Answer:
a. retained earnings of the seller are overstated
Explanation:
An asset transfer from a subsidiary to its parent at a gain is an Intragroup transaction. Intragroup transactions must be eliminated otherwise the financial statements would be misleading and not have a faithful representation.
The consequence of this transfer is that the Income of the Seller (subsidiary) increases and this also increases the Retained Income Balance of for the Subsequent years. We should eliminate this Income.
Answer:
(B) 9%
Explanation:
In order to calculate this you just have to do a simple rule of three with the 100% being the 450,000 you withdraw from the paid money the selling price of the bonds:
490,222-450000= 40,222
Now we do the rule of three using 450,000 as 100%:
So the actual rate would be 8,93 which is closest to 9% so that would be the answer.
Answer:
B. there is a perfect positive correlation between the demands for two goods.
Explanation:
Bundling is a technique of combining two or more products and selling them together as one package.
This technique is most commonly used by many companies like Microsoft, McDonald's, etc.
Sometimes, the strategy of bundling doesn't pay off in some endeavours as the companies might not make profit or not make as much profit as was originally projected.
Other times, it has paid off handsomely.
À company can decide to bundle products like a mouse, a keyboard, a USB drive and a monitor to sell as one package and not sell them individually, this is known as "pure bundling".
There is an increase in revenue when the change in value of one of the product in the bundle is equally proportional to the change in value of the other product in the bundle.
