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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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Citizens file income tax is to a sure that they will receive ?
anastassius [24]

Answer:

Down below

Explanation:

Citizens file income taxes to ensure that they will receive a if they paid too much in taxes throughout the year. Employers supply a to help citizens file their tax returns.

5 0
3 years ago
Plant assets should be recorded at cost, including all normal and reasonable expenditures necessary to get the asset in place an
sergey [27]

Answer:

A, B, C

Explanation:

Plant assets should be recorded at cost, including all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. This would include Taxes, Insurance in transit and Shipping charges.

6 0
3 years ago
You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost y
icang [17]

Answer:

b. The economic cost of going to the pub is £40.

Explanation:

The correct option is - b. The economic cost of going to the pub is £40.

Reason -

Economic cost = Cost actually incurred to choose an option + opportunity cost

Now,

We know that

Opportunity cost is the value of next best alternative forgone.

Now,

Net benefits while the person going to Pub = 50 - 30 = £20

Net benefits while the person going to Theatre = 60 - 50 = £10

So,

The opportunity cost = £20 - £10 = £10

∴ we get

Economic cost of going to the Pub= £30 + £10 = £40

3 0
3 years ago
Tedder Mining has analyzed a proposed expansion project and determined that the internal rate of return is lower than the firm d
Sholpan [36]

Answer:

C) Condensing the firm's cash inflows into fewer years without lowering the total amount of those inflows.

Explanation:

When you determine the net present value of project, the longer the project, the lower the present value of its cash flows. A way to try to increase the NPV of a project is to try to shorten its life span without reducing the value of its cash flows.

This sounds much simpler than it is. Since your project should produce cash flows in a shorter time, you will have to probably shorten the time periods of some activities, e.g. building new facilities, research and development, etc.

7 0
3 years ago
Rene would like to explore a career that would allow her to work with customers or clients. Which two of the following careers a
Ganezh [65]
Rene will likely be into a sales clerk and/or banker. Sales clerk is advertising for a product(s) on the way she'll get customer feedback to improve product(s) for customer satisfaction.
Banker she will deal customers, monetary and/or salary issues.

Hope this helps :)
8 0
3 years ago
Read 2 more answers
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