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madam [21]
3 years ago
10

Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 a

nd then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of intra-entity gross profit must be deferred by Tower?
Business
1 answer:
Murrr4er [49]3 years ago
4 0

Answer:

the amount deferred by tower as intra-entity gross profit: 3,240

Explanation:

120,000 sales with a cost of 66,000

remains at year-end:

 24,000 with a cost of:  66,000/120,000 x 24,000 = 13,200

gross profit: 24,000 - 13,200 = 10,800

For this rgoss profit we are going to deferre the 30%;

10,800 x 30% =  3,240

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Answer:

Please see attachment

Explanation:

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8 0
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The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15
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Answer:

D. Debit to Dividends Payable.

Explanation:

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  • On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.

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3 years ago
Which qualifications are most helpful for Foreign Service Careers? Check all that apply.
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A city government purchased a new fire truck in Year 1 for $270,000. The city incurred an additional $ 30,000 in transportation
erica [24]

Answer:

correct option is  $0

Explanation:

given data

purchased  truck = $270,000

transportation and calibration costs = $30,000

life = 20 years

financed period = 15 year

solution

we know here that some expenses like insurance and depreciation etc is allocated by systematic and the rational procedure for some period

so that during that period related asset is expected to provide the benefit

and acquisition of capital asset is not record as expenses

we know  appropriate property and  plant or the equipment assets account are debit on  purchases

so that Depreciation expenses are recorded to reflect the allocation of costs of the asset to operation over service life of assets

so here correct option is  $0

6 0
3 years ago
Which of the following integrates the functions of operations management, logistics management, procurement, and marketing chann
MA_775_DIABLO [31]

Answer: Supply chain management

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The supply chain manager also supervises the various channels of supply of a company's product.

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