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Alex_Xolod [135]
3 years ago
5

James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $240,00

0. At December 31, 40 percent of this merchandise remains in James's inventory. Gross profit percentages were 30 percent for James and 40 percent for Carl. The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is
Business
1 answer:
erastova [34]3 years ago
4 0

Answer:

The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is $38,400

Explanation:

The computation of the eliminated amount in the consolidation process is shown below:

= Merchandise sold × remaining percentage × Carl percentage

= $240,000 × 40% × 40%

= $38,400

We simply do the percentage of the remaining inventory and Carl percentage to the sold merchandise

The James percentage should not be considered for the computation part. Hence, we ignored it

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Answer:

Anne exhibits high level of product involvement.

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3 years ago
The term crowding-out effect refers to a situation in which a government _______________ results in ______________ interest rate
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Explanation:

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The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.

If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.

As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.

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When might be the best time to start saving for retirement?
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Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how m
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Answer:

The Future value at year time is $4,260

Explanation:

The future value at the end of the year one can be found by using the compounding formula which is as under:

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Answer:

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