1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna [14]
3 years ago
13

Business combinations historically have been accounted for as either purchases or poolings of interests. Now, with SFAS 141(R),

the acquisition method is required. Why did FASB change the rules?
Business
1 answer:
lora16 [44]3 years ago
8 0

Answer:

Explanation:

FASB amended the rules to improve the comparability of the information about business combinations provided in financial reports. A variable interest entity is a legal business.

The Financial Accounting Standards Board issued SFAS 141(R) in 2007 December, to substitute the SFAS 141. Evaluating the comment letters, articles and industry publications, they analyzed issues that were with SFAS 141 from the perspective of professionals, users and the FASB; it was evaluated 141(R) to ascertain these weaknesses and they were corrected with solutions been profound in 141(R).

You might be interested in
On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.
ivolga24 [154]

Answer and Explanation:

The journal entries are shown below:

1  Equipment   $53,420

     To Cash  $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

=  $53,420

2. Depreciation expense $9,614

      To Accumulated Depreciation - Equipment  $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

6 0
3 years ago
approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the mar
anyanavicka [17]

The question is incomplete. The complete question is :

A manufacturer believes that the cost function : $C(x) =\frac{5}{2}x^2+120 x+560$  approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?

Solution :

Given the cost function is :

$C(x) =\frac{5}{2}x^2+120 x+560$  

Now, Marginal cost = $\frac{d}{dx}C(x)$

So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.

Therefore, we have to equate : $\frac{d}{dx}C(x)= \$ 210$

$\frac{d}{dx}C(x)= \frac{5}{2}(2x)+120 = 210$

$5x + 120 = 210$

$5x=210-120$

$5x=90$

$x=45$

So when x = 45, then C(x) = $ 8042.5

Therefore, the manufacturer $\text{can make up}$ to 45 units and $\text{still makes a profit.}$ This leads to a total cost of $ 8042.5

3 0
3 years ago
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb
Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

3 0
3 years ago
Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____. A. I
sesenic [268]
C is the answer property tax
4 0
3 years ago
This model shows how cold winter air is warmed in the Great Lakes Basin, which creates ideal temperatures for year-round fruit f
Free_Kalibri [48]

Answer:

Can I Know Where Is The Model Brother Please

6 0
3 years ago
Other questions:
  • Today, you have two coins each of which is valued at $100. One coin is expected to appreciate by 5.2 percent annually while the
    7·1 answer
  • Obeying the law is what kind of <br> Ethical Behavior
    7·1 answer
  • A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimate
    11·1 answer
  • Here I Sit Sofas has 6,000 shares of common stock outstanding at a price of $83 per share. There are 710 bonds that mature in 19
    9·1 answer
  • Specific data such as age, income , family size , and accupation used for marketing purposes, is called
    11·2 answers
  • In choosing the appropriate plant size for a​ single-plant firm during the long​ run, the firm will pick the size whose​ short-r
    8·2 answers
  • Who must make the determination to cancel an invitation for bids after bid opening?a.Contracting officerb.Chief of the contracti
    12·1 answer
  • Samantha has a bakery that has been successfully run for over a year, and it’s growing in popularity. If she planned to use her
    11·1 answer
  • There is an E. coli breakout on a cruise shio which leads to the cancellation of reservations on other cruise ships. What kind o
    8·1 answer
  • On January 1, 2021, Legion Company sold $290,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!