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jarptica [38.1K]
2 years ago
10

Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per un

it. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
A High Low Low
B Low High Low
C. Low High High
D. High Low High
E. Low High Low

Which letter A, B, C, D, or E is the correct answer?
Business
1 answer:
lubasha [3.4K]2 years ago
3 0

Answer:

Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).  

Dairy Division Income Division B Income Transfer Price .

Option  "D"  is the correct answer -  High Low High.

Explanation:

Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.

Hence option  "D" is the correct answer.

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Answer:

postconventional level of moral development

Explanation:

Kohlberg's postconventional level of moral development says people now realise that some soceital laws are unjust and needs to change. They realise that people can disobey soceital norms based on their personal principles.

Principles could include human rights, justice, freedom of speech among others.

In this instance Jason has a strong sense of justice and this makes him not to collect bribes.

6 0
3 years ago
Bill Dukes has $100,000 invested in a 2-stock portfolio. $50,000 is invested in Stock X and the remainder is invested in Stock Y
ohaa [14]

Answer:

the portfolio´s beta is 1.65

Explanation:

when the individual calculation of beta has been given, is possible to aggregate them as a weigthed average, so it is possible to apply te next formula

Beta Portfolio=w_{1} *\beta _{1}+ w_{2} *\beta _{2} + .... + w_{n} *\beta _{n}

where w is the weigthed value for each asset, in this particular case we have:

Beta Portfolio = \frac{50.000}{100.000}*1.50 +\frac{50.000}{100.000}*1.70

so with this result we get 1.65

8 0
3 years ago
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should
marysya [2.9K]

Answer: Prior period adjustment resulting from the correction of an error.

Explanation:

The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.

In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.

8 0
2 years ago
If you fail to submit the FAFSA...
Georgia [21]

Answer:

The correct answer is letter "B": You will not have access to Federal student aid, such as scholarships, grants, and loans.

Explanation:

Application to the Free Application for Federal Student Aid (FAFSA) is not mandatory. However, students who do not submit an application <em>will not be provided any financial aid</em> in their studies which implies paying several thousands of dollars more than if approved to the grant.

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How does a local water budget differ from the water budget of the whole earth?
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Some societies in their local communities have more water than others, meaning that at the local level, these budgets are not equal, because some budgets are higher than the other ones. However, if you take a look at the budget for the whole planet, you will see that it is pretty balanced.
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