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Ksenya-84 [330]
3 years ago
10

On January 1, 2018, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a carrying valu

e of $421,620, and Riley paid $401,937 for them. How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2018?
Business
1 answer:
Shalnov [3]3 years ago
7 0

Answer:

The gain on exthinguish will be       19,683

Explanation:

The bond had a carrying value of 421,620

They were purchase at                   401,937

The gain on exthinguish will be       19,683

That's because the bonds payable were purchase from third parties.

The subsidiary already issued the bond in a previous period.

When the parent company purchase the bonds, they were retired from other entities, so it is not a intra-entity transaction, therefore produces gains or losses.

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In a labor market comprising many firms hiring many workers with identical skills, which of the following is correct?
serg [7]

Answer:

Individual firms and workers are wage takers because they cannot exert any control over the market wage rate.

Explanation:

Remember, a labor market shows the availability of employment and labor, in terms of their supply and demand.

This scenario occurs in a purely competitive labor market.

In this market there many qualified workers with identical skills; meaning the workers share similar skills while the demand for such skills is high because of their importance to firms.

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3 years ago
_____ refers to selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grad
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Answer:

Robinson-Patman Act of 1936

Explanation:

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A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50
34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

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$0 $50500 $50500

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(11200*5 = -56000)

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Electronic Profiling is your answer. I hope I helped:)
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Explain why each of the following statements is a rationale for conducting active or passive policy: Economic circumstances can
Vladimir79 [104]

Answer:

The rationale for conducting active policy is the interest of Congress to alter the state of the economy through a deliberate change in established policies.

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Explanation:

The following statements applies passive policy because the economy is expected to stabilize on it's own without the deliberate act of congress influencing it:

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