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Mnenie [13.5K]
3 years ago
10

8. Point Co. purchased 90% of Sharpe Corp.'s voting stock on January 1, 20X2 for $5,580,000. Prior to the acquisition, Point hel

d a 10% equity position in Sharpe Company. On January 1, 20X2 Pointe's 10% investment in Sharpe has a book value of $340,000 and a fair value of $620,000. On January 1, 20X2 Point records the following: a. Debit Gain on revaluation of Sharpe's stock $280,000 b. Credit Gain on revaluation of Sharpe's stock $280,000 c. Credit Investment in Sharpe stock $5,860,000 d. Debit Investment in Sharpe stock $6,200,000
Business
1 answer:
aev [14]3 years ago
4 0

Answer:

Option (b) is correct.

Explanation:

Given that,

Cost of stock purchased = $5,580,000

Book value of 10% investment in Sharpe = $340,000

Fair value of 10% investment in Sharpe = $620,000

Therefore, the fair value of 10% investment in Sharpe company is greater than the book value. So, there is a gain of:

= Fair value of 10% investment - Book value of 10% investment

= $620,000 - $340,000

= $280,000

Hence, the gain on the revaluation of the Sharpe stock is credited.

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Sometimes food is produced in other countries that do not have the same level of chemical safety as in the US. This imported foo
Artemon [7]

Answer:

The correct answer is letter "A": affordable food creates an external benefit rather than an external cost in the case.

Explanation:

Externalities are costs third parties have to be responsible for even if they were not involved in causing the externality. There are positive externalities and negative externalities. <em>Positive externalities</em> are those that third parties benefit from. <em>Negative externalities</em> affect third parties.

Thus, importing less-expensive but chemically-dangerous food will create a positive externality to consumers purchasing those types of foods since less money is getting out of their pockets without them having to influence discounts.

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3 years ago
Categories of manufacturing costs include ______. Multiple select question. direct labor manufacturing overhead direct materials
Luda [366]

Firms do create goods. Categories of manufacturing costs include direct labor, direct materials and manufacturing overhead.

<h3>What are manufacturing costs?</h3>

Manufacturing costs is grouped into materials, labor, and overhead. They are kinds of  direct costs.

Manufacturing cost is known to be the amount of costs of all resources taken into the process of creating a product. The manufacturing cost is grouped into three categories called: direct materials cost, direct labor cost and manufacturing overhead.

Learn more about manufacturing costs  from

brainly.com/question/13767214

4 0
2 years ago
Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was p
mote1985 [20]

Answer:

B. $2,300.

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The computation of the ending inventory using FIFO method is given below:

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4 0
3 years ago
MM Proposition I with corporate taxes states that:
OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

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3 years ago
Of the 200 employees at Company A, 70 work part-time and the rest work full-time. If 140 of the employees like their jobs and 10
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130 full time workers like there job
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