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Law Incorporation [45]
4 years ago
15

When Palm, Inc. acquired its 100% investment in Star Co., a foreign entity, the excess of cost over book value was 10,000 FC. Th

is excess was traceable to a 10-year patent. Assume the foreign entity's local currency is its functional currency.
The elimination entry to amortize the excess will include a(n):

A. debit to Patent for 10,000FC multiplied by the current exchange rate.
B. debit to Patent for 10,000FC multiplied by the historical exchange rate.
C. credit to Investment in Star for 10,000FC multiplied by the average exchange rate.
D. credit to Cumulative Translation Adjustment for 10,000FC multiplied by the historical exchange rate.
Business
1 answer:
saul85 [17]4 years ago
3 0

Answer:

A. debit to Patent for 10,000FC multiplied by the current exchange rate.

Explanation:

Since the excess of cost over book value was 10,000FC and this excess was traceable to a 10-year patent.

The elimination entry to amortize the excess will include a debit to Patent for 10,000FC multiplied by the current exchange rate assuming the foreign entity's local currency is its functional currency.

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A total-cost curve shows the relationship between the
Tanzania [10]
The answer has to be a
5 0
3 years ago
Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was:____________
sergij07 [2.7K]

Answer:

<u>c. exposing himself to unlimited personal liability.</u>

Explanation:

One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.

A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.

Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.

Thus, the correct option is, c. exposing himself to unlimited personal liability   .

8 0
3 years ago
The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. An inv
jek_recluse [69]

Answer:

D. $0.93

Explanation:

Upmove (U) = High price/current price

                    = 42/40

                    = 1.05

Down move (D) = Low price/current price

                          = 37/40

                          = 0.925

Risk neutral probability for up move

q = (e^(risk free rate*time)-D)/(U-D)

  = (e^(0.02*1)-0.925)/(1.05-0.925)

  = 0.76161

Put option payoff at high price (payoff H)

= Max(Strike price-High price,0)

= Max(41-42,0)

= Max(-1,0)

= 0

Put option payoff at low price (Payoff L)

= Max(Strike price-low price,0)

= Max(41-37,0)

= Max(4,0)

= 4

Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)

                               = e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)

                               = 0.93

Therefore, The  value of each option using a one-period binomial model is 0.93

8 0
3 years ago
Could the central utility plant be built in a way that would allow for expansion as the additional buildings are built?
Orlov [11]

Yes, central utility plant can be built in a way that would allow for expansion as the additional buildings are built.

HVAC:

In this field, the phrase "HVAC" is frequently used, although many homeowners are unsure of what it entails. It is an acronym for "heating, ventilation, and air conditioning."

The principles of thermodynamics, fluid mechanics, and heat transfer are the foundation of the HVAC (Heat in Ventilation and Air Conditioning) system. The technology behind comfortable environments in homes and cars called HVAC.

According to the inquiry, the current HVAC design uses a central forced air heating and cooling system in the office and electric baseboard heaters around the perimeter. The lab space is designed with a three-pipe hydronic plumbing system that generates heating and cooling utilizing gas-fired boilers and electric chillers.

This HVAC design has several benefits like it will provide:

The psychological state of thermal comfort, which conveys happiness with the thermal environment and is evaluated subjectively.

One of the key objectives of HVAC is to maintain a standard of thermal comfort for people inside of buildings or other enclosed spaces.

Acceptable indoor air quality refers to the condition of the air inside and around buildings and other structures.

Make sure that poor indoor air quality doesn't hinder learning or productivity at work by taking care of the air.

District energy systems

1 Heating energy: In united states specially, Water heating is more efficient than others for heating buildings. And Forced systems have several benefits such as

We get better cooling effects from it.

it provide energy saving of up to 15-20 %

2 Energy used for air conditioning: Air conditioners and heaters transport heat rather than changing its form. Thermal efficiencies do not adequately explain the performance of these devices, even though it enhances efficiency because of this heat.

Yes, it is possible to construct the central utility plant in a way that would enable extension as more buildings are constructed. because it will improve the interchange of thermal energy, or heat, between physical systems and the quality of the air. Building reconstruction is more advantageous when done in accordance with HVAC Design.

Learn more about HVAC  here brainly.com/question/20264838

#SPJ4

6 0
1 year ago
Snyder, Inc. manufactures three types of golf balls; the Worm-burner, the Escalator, and the Slice. Over the past year, variable
jolli1 [7]

Answer:

D

Explanation:

Sales mix is a ratio of products sold. In this case, sales by golf ball type as a percentage of total sales is the sales mix as it shows the ratio of product sold.

7 0
4 years ago
Read 2 more answers
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