Answer:
(A) $390,000
Explanation:
Under LIFO method as the name suggests "Last In First Out"
the goods purchased in Last that is latest are sold first, that is goods purchased in 2015 will be sold first, therefore in the given case at the end of 2014 using LIFO we have,
Balance = $390,000
Because balance of goods purchased in 2014 i.e. $756,000 is sold first in 2014 remaining inventory at year end will be of 2013
Correct option is
(A) $390,000
Answer:
Correct answer is (C) capacity expansion.
Explanation:
Capacity expansion is a function of finance available in the company. Capacity expansion is described as when company add more facilities in terms of production machineries to meet the rising demands of their goods and / or services.
Answer:
Fair Value adjustment $5,000 Dr.
Unrealized holding gain-net income $5,000 Cr.
Explanation:
Common stock purchase price = $500,000
North company outstanding stock = $10,000,000
5% stock of outstanding stock purchased :
(5/100) * $10,000,000
0.05 * 10,000,000
= $500,000
Fair value of investment = $505,000
Adjustment in fair value = $505,000 - $500,000 = $5000 ( Debit)
Unrealized holding gain-net income = $505,000 - $500,000 ( Credit)
Answer:
Control monopoly power preserve and promote competition.
Explanation:
Antitrust laws are rules that are put in place to ensure equal economic rights in business. This law enforces different types of businesses to follow an orderly and structured form of competition in the market.
Antitrust laws promotes the production of different standard goods at the lowest possible price. This law is put in place to enable consumers choose from different alternatives present in the market.
Antitrust law encourages businesses to cut down their cost and produce more quality products.
