Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method.  This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services.  When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen.  It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price.  According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
 
        
             
        
        
        
Answer:
$441,000
Explanation:
The computation of the cost of merchandise sold is shown below:
Cost of merchandise sold = Opening inventory + net purchase - ending inventory
where, 
Opening inventory  = $14,500
Net purchase is 
= $475,000 - $15,000 - $9,000 + $7,000
= $458,000
And, the ending inventory is $31,500
So, the cost of merchandise sold is 
= $14,500 + $458,000 - $31,500
= $441,000
 
        
             
        
        
        
Answer:
ii) Average revenue equals $10
Explanation:
A perfectly competitive market is where there are many buyers and sellers of homogenous goods. They are price takers. Price = marginal cost = marginal revenue = average revenue 
Total revenue = price × quantity sold 
$500 = price × 50
Price = $10
Average revenue = Total revenue / output 
$500 / 50 = $10
 
        
             
        
        
        
Answer:
the present value of the bond is $16.67
Explanation:
given data 
time NPER = 12 year = 12 × 2 = 24 semi annual 
bond value FV  = $1000
interest PMT = $50 
rate of interest = 6% =  = 0.03 = 3 % semi annual
 = 0.03 = 3 % semi annual 
  
solution
we will apply here formula for current value in excel as given below 
-PV(Rate;NPER;PMT;FV;type)    .............1
put here value as
rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50 
solve it we get 
the present value of the bond is $16.67
 
        
             
        
        
        
Answer:
a. The amount refund owed to the customer is : $29,792
b. To record the refund and the return of merchandise:
Dr Sales returned and Allowances     $30,400
 Cr Sales Discounts                              $608
 Cr Cash                                                $29,792
(to record the refund of $30,400 sales with sales discount of $608 made)
Dr Merchandise Inventory                    $13,060
 Cr Cost of Merchandise sold               $13,060
(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory) 
Explanation:
- Further explanation for sell discounts calculation:
As the terms is 2/10, total discount had been given as calculated below:
$30,400 x 2% = $608.