Answer:
The statement states least regarding the brand equity concept is option A
Explanation:
Brand equity is the value or value premium which a firm generates or create for the product with a name that is recognizable when compared to the generic equivalent. It is used by companies for creating a brand for their products by making them superior in reliability and quality.
So, the one which state least regarding the same that it provide information for assessing the maximizing of the supply chain.
Answer:
a. Does this qualify as a good Section 351 transaction?
Answer: No. This is because service is not a qualified property contribution under the section 321. Moreover, fair value of stock received by Chrissie is just 75% of 100%.
b. What gain does Chrissie Recognize?
Answer: The Gain Chrissie recognizes = FMV of stock received - Adjusted basis of transferred property = $750,000 - $500,000 = $250,000.
c. What gain does Mirinda recognize?
Answer: The Gain Mirinda recognizes is $0 or Mirinda will recognizes compensation worth which will be taxed as an ordinary Income ($250,000).
I would think A the inflation rates are controlled
Given:
<span>issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2016
</span><span>debt issue costs were $1,500.
interest is paid semiannually on December 31 and June 30
</span><span>one year from the issue date (july 1, 2017), the corporation exercised its call privilege and retired the bonds for $395,000
</span><span>the corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Journal entries:
Debit Credit
</span>June 30, 2016 Cash 383,500
Bonds payable 383,500
Dec. 31, 2016 Interest expense 20,825
Bonds payable 825
Cash 20,000
June 30, 2017 Interest expense 20,825
Bonds payable 825
Cash 20,000
June 30, 2017 Bonds payable 385,150
Loss on early extinguishment 9,850
Cash <span>395,000
*
Interest is computed by: 400,000 * 10% = 40,000 per annum
40,000 / 2 = 20,000 per semi-annual. Every Dec. 31 and June 30
400,000 - 385,000 = 15,000 discount
15,000 discount + 1,500 debt issue cost = 16,500
16,500 * 10% = 1,650 amortization per annum
1,650 / 2 = 825 amortization per semi-annual
Bonds payable total = 383,500 + 825 + 825 = 385,150
Loss on early extinguishment = 395,000 - 385,150 = 9,850
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