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zloy xaker [14]
3 years ago
12

Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

000. During the subsequent year, the inventory is sold. As a result of the sale of inventory, investment revenue would _______.
Business
1 answer:
beks73 [17]3 years ago
7 0

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

  • Cost
  • Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

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A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured
Lemur [1.5K]

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

Sell for scrap= 65,000 - 50,000= 15,000

Continue processing= 150,000 - 80,000 - 50,000= 20,000

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3 years ago
On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bou
MA_775_DIABLO [31]

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

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3 years ago
Which of the following is a benefit associated with regional economic integration?
Assoli18 [71]

Answer:

its b

Explanation:

3 0
3 years ago
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Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxati
elena-14-01-66 [18.8K]

The one that has limited liability for its owners, but passes income through to its investors and avoids double taxation is option C. S Corporation. Read below about S Corporation.

<h3>What is S Corporation?</h3>

A variation on the standard corporation model is the S corporation. An S corporation passes its income through to its owners, so that the entity itself does not pay income taxes. The owners report the income on their tax returns, thereby avoiding the double taxation that arises in a regular C corporation.

Therefore, the correct answer is as given above

learn more about S corporation: brainly.com/question/13187927

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The complete question goes thus:

Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxation

A. C Corporation

B. Partnership

C. S Corporation

D. Types of Business Entities

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2 years ago
What is an example of literary nonfiction
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<span> Some </span>examples of literary nonfiction<span> include personal journals, diaries, memoirs, letters, and essays.</span>
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3 years ago
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