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meriva
3 years ago
8

Kordel Inc. acquired 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory a

cquired over the past few months. In preparing consolidated financial statements, what amount of Raxston’s liability should be eliminated? Multiple Choice
a. $375,000.
b. $125,000.
c. $300,000.
d. $500,000.
e. $0.
Business
1 answer:
Nady [450]3 years ago
8 0

Answer:

what amount of Raxston’s liability should be eliminated? d.$500,000

Explanation:

At different levels of the consolidation, certain intercompany payables and receivables balances must be eliminated. Eliminations are only required in the context of a consolidation where the trading parties are both included in a given consolidation.

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Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
kow [346]

Answer:

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.

The value of the option if job growth is 193,500 is $0.

Explanation:        

Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.

Therefore, the value of the option if job growth is 193,500 is $0.

7 0
3 years ago
Read 2 more answers
Jennifer couldn't believe her bad luck. The business planning cycle at Allworld Insurance was almost over. The only thing her bo
VashaNatasha [74]

Answer:

Allworld Insurance

1. Mission Statement

2. Tactical

3. Strategic

4. Operational

Explanation:

(A) Tactical plans include specific actions to enable the achievement of company-wide strategies.

(B) Mission statement describes the goal of an entity.  For example, a mission statement can describe an entity as renowned for its efficiency and cost reduction for its customers.

(C) Operational plans cover daily and routine activities at the individual level of the organization.

(D) Strategic plans embrace the whole organization and establishes how organizational goals will be achieved.

6 0
3 years ago
Discuss what sources of factual information would be most beneficial for the following areas of practice:
schepotkina [342]

Answer:

The answer is stated below:

Explanation:

Sources of the factual information in the following areas of the practice are as:

a.

A practice of family law need or require a records of the marriage or a divorce, visitations created by court, child custody agreement and records of the adoption. The clients of the practice could be asked for the information.

b.

This practice of law dealt with the study of how the directors, stakeholders, shareholders, employees and the consumers interact with each other and with the environment. Under this practice, it looks for the records of the bank transaction.

c.

This law practice would benefit or provide advantage from the records of the medical, any statement of witness, records of disability and the records for the equipment maintenance if required.

d.

Under this practice, the statements of banks, real estate listing, IRS records and credit agencies would be advantageous sources of the information.

e.

Under this practice, it involve the powers of attorney, deeds documents, mortgages, grants, transfers and wills which are pertaining to bankruptcy.

7 0
3 years ago
If the Ricardian equivalence theorem LOADING... is not​ relevant, then an​ income-tax-rate cut A. will result in a multiple time
LenKa [72]

Answer:

The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable.

Explanation:

Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.

This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.

If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.

The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.

6 0
3 years ago
The situation where the buying power of money in terms of goods and services increases is called:_____
Alla [95]

The situation where the buying power of money in terms of goods and services increases is called <u>deflation</u>

In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.

Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.

Learn more about deflation  here: brainly.com/question/13562161

#SPJ4

6 0
2 years ago
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