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Dimas [21]
3 years ago
5

: Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000. After E

ffie made the first required payment, it ceased making other payments. The stock subscription agreement states that Effie, thus, forfeits its payments and is entitled to no other future consideration. How should Narda record the $200,000 forfeited payment
Business
1 answer:
Gnoma [55]3 years ago
8 0

Answer:

Since Effie Corporation forfeited their stock subscription, then they will lose their stocks and the money they invested in Narda Corporation.

In this case, Narda was being completely acquired by Effie Corporation and the whole operation went down, then the initial payment must be recorded as additional paid in capital. It should not be included as part of operating income since it wasn't a normal business activity.

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________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising contro
max2010maxim [7]

________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

Expropriation

What is expropriation ?

Expropriation is when a government seizes privately owned property against the owners' will, presumably so that it can be used for the general welfare of the populace. Properties are most frequently taken in the United States in order to construct roads, trains, airports, or other infrastructure projects. Since the Fifth Amendment of the Constitution prohibits the expropriation of private property "for public use without just compensation," the property owner must be compensated for the seizure.

So, Expropriation is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

Learn more about Expropriation here:

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7 0
1 year ago
Coaches can receive a bonus from the booster club at the conclusion of a season.
inna [77]

Answer:

The statement is true

Explanation:

Booster club is the organization which is formed in order to support the organization, associated club and sports team. The club support through coordinating events or raising the funds.

So, yes, the coaches are legally could receive the bonus from the booster club at the season conclusion as the booster clubs are not state funded, so they are intended to use the money for the school resources.

And there is no legal matter is involves with giving the coaches bonuses as the booster club raise the fund from the extra circular activities.

 

4 0
3 years ago
What is the present value of a series of payments received each year forever, starting with $1,000 paid one year from now and th
Ivanshal [37]

Answer:

Calculate PV of a 10-year annuity discounted at 6% interest rate; PV = $11,040.13.

Explanation:

8 0
2 years ago
Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00,
hichkok12 [17]
The number of additional items that Belle Co. purchased is equal to 27. That is, 7 + 8 + 12 which is equal to 27. The concept of LIFO is "Last In First Out" which means that the ones that has been purchased last should be dispensed off first. 

The company sold 31 units. 27 of this is already the newly purchased ones and 4 came from the beginning inventory leaving the number of items to only 8 sets of paint for $1.5. 

The cost of the ending inventory is,

                 I = 8($1.5) = $12

The answer is letter C. $12.00. 
6 0
3 years ago
Read 2 more answers
Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,0
White raven [17]

Answer:

$12,000

Explanation:

Gain = Sold duplex - Fair market Valve

Gain = 312,000 - 300,000

Gain = $12,000

Therefore $12,000 gain was recognized

3 0
3 years ago
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