Answer:
The correct answer is B
Explanation:
The net cost of goods is computed as if the paid in the discounting period:
Net Cost of goods = Inventory cost - (Inventory cost × Discounting percentage)
where
Inventory cost is $9,000
Discounting percentage is 2%
Putting the values above:
Net Cost of goods = $9,000 - ($9,000 × 2%)
Net Cost of goods = $9,000 - $180
Net Cost of goods = $8,280
Therefore, the amount of $8,280 will be paid by the company if paid within the discounting period and avail the discount of $180.
Answer:
Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Explanation:
Book value per share of Red Inc = $1.20 per share
As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.
Net gain = Sale price - Book value
= $3.40 - $1.20 per share = $2.2 per share
Total gain for the year end on June 30 will be
= $2.2 per share X 180,000 shares = $396,000 shares
Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
To handle products in the decline stage of the product life cycle, companies often use either a <u>divesting </u>strategy or a <u>harvesting </u>strategy.
The rate of decline is governed by means of two factors: the charge of alternate customer tastes and the fee at which new products are input into the market. Sony VCRs is an instance of a product within the decline degree. The call for VCRs has now been surpassed through the demand for DVDs and online streaming of content material.
Decline techniques are also known as protective techniques and are pursued when a business enterprise finds itself in an inclined position as a result of negative management, inefficiency, and ineffectiveness.
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good debt is for buying assets : things that will be worth more in the future
bad debt is for buying liabilities : things that will be worth less in the future
The answer is distribution
