Answer:
Payne should exclude Salem's January 1, Year 1, Retained Earnings and income for January 1 to September 30 from consolidated Retained Earnings and consolidated income
Explanation:
The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 would not be included in the Year 1 consolidated financial statements.
The reason is that The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 are part of the equity of the shareholders that that Payne acquired on September 30, Year 1. They would then be eliminated in the eliminating entry of the consolidating investment.
Answer:
the net present value is $3,600
Explanation:
The computation of the net present value is shown below:
Net present value = Incremental value - additional cost incurred
where,
Incremental value is $2,800
And, the additional cost incurred is
= $37,000 - 1,800 × $21
= $37,000 - $37,800
= -$800
So, the net present value is
= $2,800 - (-$800)
= $3,600
Hence, the net present value is $3,600
Answer:
The economic life of a business can be divided into artificial time periods.
Explanation:
Generally the accounting period is a calendar year, or in case if it is not the same then it is the period of 12 months. Although sometimes the management wants to take decisions based on short time period than the actual accounting year.
Accordingly in the accounting world based on this assumption the companies tend to make accounting records even for such desired period. Accordingly it assumes to divide the accounting period into artificial time periods.
Answer:
The correct answer is option B.
Explanation:
The new growth theory states that economic growth can be achieved by increasing the level of the knowledge capital of firms. To increase the knowledge capital the government can adopt certain policies.
All the policies mentioned here except the second one will help in increasing the level of knowledge capital. Providing scholarships, providing research grants, increasing resources spent on assisting companies to enforce their patents all will help in promoting research and development and increasing the knowledge base.