Bride wealth or bride price
Answer: The correct option is "c.exercising an in-the-money put option".
Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.
because he would be paying the debt with the participation in the equity of the company.
Answer:
Exclusive distribution
Explanation:
Exclusive distribution is defined as an agreement between a producer and retailer that gives the exclusive right to a retailer to distribute the products of a supplier within a given geographical location. Only one distributor is used by the supplier within a given area.
In the secanrio given Giant Beanstalk a company that processes and cans vegetables, recieves raw materials from over 80 companies. It only gives distribution rights to Greenleaf a grocery chain with 38 stores in the country.
Answer:
Journal Entry
Dr. Contingent Consideration Liability $500,000
Cr. Goodwill $500,000
Explanation:
It is assumed that the decline in the fair value is the correction of the acquisition entry. It means due to this event the consideration liability and goodwill are overstated we need to rectify the balances.
Hence,
The contingent consideration liability will be debited to reduce the liability and goodwill will also be decreased by crediting the goodwill account.
Answer:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base (machine hours)
Explanation:
Giving the following information:
The company's predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours.
To allocated overhead costs to a specific job, you need to multiply the estimated rate for the number of machine-hours required for the job.
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base (machine hours)
