The term white-collar crime was coined by sociologist Edwin Sutherland <span>to refer to crimes that people of respectable social status commit in the course of their occupation
Compared to blue-collar crime, white-collar crime is much harder to be prosecuted because the perpetrator usually has a really high status in the industry, such as high-ranking government officials, or upper management from a big company.</span>
Answer:
c.GAS Running Company is required to use the equity method for this investment.
Explanation:
a.GAS Running Company is the subsidiary company.
-> wrong, because in this case Gas Running Company own shares of Zoom Shoes Inc., not vice versa
b.Zoom Shoes Inc. is the parent company.
-> wrong, same explanation as above for (a)
c.GAS Running Company is required to use the equity method for this investment.
-> true
Equity method in accounting is the process of treating investments in associate companies... is used in accounting when a company holds approximately 20% to 50% of a company's stock and this is considered to have significant influence.
The holding of Gas Running Company in Zoom Shoes Inc. is 30.4% (=35,000 shares/ 115,000 shares of stock outstanding), is less 50% stakes. That requires Gas Running Company to use Equity method accounting to use the equity method for this investment.
d.GAS Running Company is required to combine the financial statements of Zoom Shoes Inc. and report as a single company.
-> wrong, same explanation as above for (c)
Answer: Option b
Explanation: Perfect competition refers to a market structure in which there are large number of small sellers selling identical products in the market. Due to large number of participants no individual firm is able to affect prices on the basis of their operations.
It is not possible earn abnormal profits in such a market structure.
Hence from the above we can conclude that the correct option is B.
Answer:
a. 7.30%
b. 4.745%
Explanation:
For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,000 × 106% = $1,060
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2 = $40
NPER = 14 years × 2 = 28 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
a. The pretax cost of debt is
= 3.65% × 2
= 7.30%
b. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.30 % × ( 1 - 0.35)
= 4.745%
Answer:
$15,000
Explanation:
The value that the computer equipment should be recorded in the accounting records of the partnership is the fair value
When calculating the value of a partner's share in a partnership, we use the Asset Approach
.
The approach calculates <u>net asset value by subtracting the fair market value of the business's liabilities from the fair market value of its assets</u>.
Hence in the scenario, the applicable value for the computer equipment will be the fair value of $15,000