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a_sh-v [17]
3 years ago
14

What is "transfer pricing?" The prices established to record an intercompany sale The taxes paid on sales in a foreign country T

he value of sales made in a foreign country The cost to convert from one country's GAAP to another country's GAAP
Business
2 answers:
postnew [5]3 years ago
7 0

Answer:

The prices established to record an intercompany sale

Explanation:

Transfer pricing refers to the established price used to record sales of goods or services between a parent and a subsidiary, or between subsidiaries. E.g. Ford sells pickups to its Mexican subsidiary, the price used to record the transaction is referred to as transfer pricing.

US GAAP doesn't allow profits to be made with intercompany sales, so transfer pricing should include only the cost of goods sold plus any other cost related to the transaction.

Lisa [10]3 years ago
6 0

Answer:

Transfer pricing are the prices established to record inter-company sale

Explanation:

The transfer price is the price at which one arm of a business sells to the other.For instance,the price at which one division of a company sells to  another division,

The transfer price is very important in order that tax authority may see that the sale price charged is at arms length for all parties involved.

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pentagon [3]

Answer:

The Journal entry is as follows:

On December 31, 2021

Interest Receivable A/c Dr. $147

          To Interest revenue A/c      $147

(To record the interest receivable)

Working notes:

Interest Receivable:

= Amount received × Annual rate of interest × Time period

= $3,600 × (14% ÷ 12) × 3.5

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8 0
3 years ago
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4
KatRina [158]

Answer:

Interest rate on the a three year bond =5.5%

Explanation:

one-year bond rate expected = 4%, 5%, 6% for the next three years

liquidity premium on a three year bond = 0.5%

number of years = 3

The interest rate on the a three year bond can be calculated as

= liquidity premium + ( summation of bond rates for the next three years/number of years )

= 0.5 + ( (4+5+6)/3)

= 0.5 + ( 15/3)

= 0.5 + 5  = 5.5%

4 0
3 years ago
Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c
Bumek [7]

Answer: Option A

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The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0
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. What is a great system to manage money and prevent taking too much from one category? Please describe the
Allushta [10]

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Mkey [24]

ANSWER:

Most small business ventures are in the low innovation/high risk  category of the entrepreneurial strategy matrix.

~batmans wife

6 0
3 years ago
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