Answer:
Explanation:
When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.
If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.
Answer:
How much of the distribution is treated as a dividend in 20X3?
100000
Explanation:
E&P CURRENT 200000
E&P ACCUMULATE -100000
Dividend 100000
Answer:
Bilateral contract.
Explanation:
Bilateral contract: It is a legally binding contract between two or more parties, wherein each party agree to fullfil the promise made to each other.
There are four elements necessary for the existence of a bilateral contract:
- Agreement.
- Consideration.
- Intention to create legal relations.
- Certainty.
In the given case, Clay offers to pay Diane $50 for a golf lesson for Ewan, which they are fulfilling by agreeing to meet on Friday to exchange the cash for the lesson. Therefore, these parties have made a bilateral contract.