Answer: -$487.50
Explanation:
Last year income = Sales - Operating Costs - Depreciation - Interest
= 10,500 - 6,250 - 1,300 - ( 5,000 * 6.5%)
= $2,625 - tax
= 2,625 - ( 2,625 * 35%)
= $1,706.25
This year income = Sales - Operating Costs - Depreciation - Interest
= 10,500 - 6,250 - (1,300 + 750) - ( 5,000 * 6.5%)
= $1,875
= 1,875 - ( 1,875 * 35%)
= $1,218.75
Difference = This year income - Last year
= 1,218.75 - 1,706.25
= -$487.50
Answer: the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.
Explanation:
Repatriation simply means converting of foreign currencies into local ones. Earning of income in foreign currencies, by a comoany are typically subject to risk regarding foreign exchange which could bring about a loss.
It should be noted that the exchange gain or loss on repatriated funds from a foreign branch is calculated when the nominal amount of the funds is multiplied by the difference between the exchange rate on the date of repatriation and the exchange rate used to translate the branch's pretax income.
Answer:
a competitive price
Explanation:
a competitive price
A four firm concentration ratio being just 20% shows and it is not mentioning any monopoly. Also a Herfindahl index of 600 is considered low
therefore a firm in mentioned industry likely to have a competitive price as lot of firms are competing with same market shares.
competitive price is referred to that tactics where all competitor sells all items at same price.
Answer: Earnings are reported by the investee in its financial statements
Explanation:
Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.
Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.
Answer:
a. Concentric diversification
Explanation:
The concentric diversification is a diversification in which a company purchased or developed its new products that are closely related to that product in which the company is dealing in order to enter one or more markets
Here in the given situation, since the company produced that product that are same to their current markets so that they could enter into a new customer group so this represents the concentric diversification
