1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anastaziya [24]
3 years ago
9

Prince Company acquires Duchess, Inc. on January 1, 2016. At the date of acquisition, Duchess has long-term debt with a fair val

ue of $1,500,000 and a carrying amount of $1,200,000.
With respect to long-term debt consolidation worksheet adjustments in periods following the acquisition, which of the following is correct:

Multiple Choice:

Debit Interest Expense and Credit Long-Term Debt Expense.

Prince must recognize an increase in interest expense if the amount is material.

Do not adjust the value of the debt because Prince is not obligated to repay the debt.

Credit Long-Term Debt and Debit Interest Expense on the balance sheet of Duchess.

Debit Long-Term Debt and Credit Interest Expense.
Business
1 answer:
vlabodo [156]3 years ago
5 0

Answer:

Debit Interest Expense and Credit Long-term Debt Expense.

Explanation:

When Price is acquiring the Duchess Incorporation, it is agreeing upon everything that the Duchess is liable to pay and and receive from any other party. Duchess has a long term debt with a fair value of $1500000, which needs to be paid by the acquiring company now i.e. Prince. Hence, the interest expense would be paid and the long-term debt expense would be decreased by the same amount.

Therefore, for that the entries would be as follows:

                                                     Debit             Credit

Interest Expense                           $xxx

Long-term debt expense                                    $xxx

You might be interested in
An investment adviser representative may describe dollar cost averaging to a customer as:______
grigory [225]

To buy a certain security using dollar cost averaging, an investor must make regular payments (let's say monthly) of a set dollar amount (let's say $100 per month).

<h3> What is dollar cost averaging?</h3>

The practice of investing a set dollar amount on a regular basis, independent of the share price, is known as dollar cost averaging. It's a terrific method to form a disciplined investing habit, increase your investment efficiency, and possibly reduce your stress—as well as your expenses.

Say you put $100 away each month. Your $100 will buy fewer shares when the market is up, but more shares when the market is down. While compared to what you would have paid if you had purchased all of your shares at once when they were more costly than the average, this technique may eventually lower your average cost per share.

To know more about 'Dollar cost averaging', visit:brainly.com/question/14776694

#SPJ4

5 0
1 year ago
A country has a noninstitutionalized population of 243 million people. out of that number, 38 million are under the age of 16 70
rosijanka [135]

Answer:

The answer is 60%

Explanation:

Labor force is the total number of people that have job(employed) and the number of people who are willing, able and actively searching for job(unemployed) in a population.

Labor force participation rate is calculated by dividing the labor force by the noninstitutionalized population.

Labor force = employed + underemployed + unemployed

= 96 + 31 + 8

=135 million

So we have:

(135 ÷ 243) x 100 percent.

60% (the nearest whole percentage)

3 0
3 years ago
Larry is a hard-working college freshman. One Saturday, he decides to work nonstop until he has answered 200 practice problems f
OverLord2011 [107]

Answer:

  • The marginal gain from Larry's second hour of work is 60 problems
  • The marginal gain from Larry's fourth hour of work is 20 problems
  • The best combination is 1 hour of working problems + 3 hours of reading

Explanation:

To get the <em><u>marginal gain</u></em> we subtract from the latest hour, in this case the second hour (140), the production from the previous hour (80). 140-80=60. <em>It's always the same, the latest minus the previous one.</em>

So let's do the same for the fourth hour:

Noon................200 problems

minus

11:00 AM..........180 problems

200-180= 20 problems

Now to know how many hours he should spend working on problems and reading, let's compare:

An hour of reading equals to 70 problems made; (because working on 70 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour).

hours of working problems         problems solved

0............................................................0

1.............................................................80

2............................................................140

3............................................................180

hours reading                    problems equivalent to hours read

4...............................................(4*70)=280

3...............................................(3*70)=210

2...............................................(2*70)=140

1................................................(1*70)=70

finally let's add up the two combinations (0 and 4, 1 and 3, 2 and 2, 3 and 1)

0 and 4_______________0+280= 280

1 and 3________________80+210=290

2 and 2_______________140+140=280

3 and 1________________180+70=250

<em>And the best combination is 1 hour of working problems + 3 hours of reading=</em><em>290</em>

3 0
3 years ago
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 pe
umka21 [38]

Answer:

50%

Explanation:

Given: Selling price= $120 per unit.

          Variable cost= $60 per unit.

First computing contribution margin.

Contribution margin= Selling\ price\ per\ unit - variable\ cost\ per\ unit

⇒ Contribution margin= \$120 - \$ 60

∴ Contribution margin=  \$ 60

Now, calculating the contribution margin ratio.

Contribution margin ratio= \frac{Contribution\ margin}{selling\ price\ per\ unit}

⇒ Contribution margin ratio= \frac{\$ 60}{\$ 120} \times 100

∴ Contribution margin ratio= 50\%

Hence, the product´s contribution ratio is 50%.

7 0
2 years ago
The National Bank Act of 1864 established the national banking system in the United States. The Act still governs U.S. national
Andrew [12]

Answer:

The answer is True

Explanation:

4 0
3 years ago
Other questions:
  • When preparing for an emergency bioterrorism drill, the nurse instructs the drill volunteers that each biological agent requires
    9·1 answer
  • Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $40,200 cash and equipmen
    12·1 answer
  • Which ics function is responsible for documentation for mutual aid agreements?
    14·2 answers
  • When heavy rain ruined the banana crop in central​ america, the price of bananas rose from ​$0.90 a pound to ​$1.10 a pound. ban
    12·1 answer
  • Which type of bank account is most likely to pay you interest on the money in the account?
    12·1 answer
  • What is the principleof the law of supply ?​
    9·1 answer
  • On January 1, 2021, the Coldstone Corporation adopted the LIFO retail inventory method. Beginning inventory at cost and at retai
    14·1 answer
  • Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from cus
    10·1 answer
  • Look at Ivan's check register. Ivan spent $158.29 on groceries. He then transferred $250 to his savings account.
    12·2 answers
  • isiah copeland sells tennis equipment. he is guaranteed a minimum salary of $1,500 per month plus 5.75% of his total sales. what
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!