Those decisions should be based on COSTS AND BENEFITS.
In making decision on which course to follow, the decision made will be based on the costs of the products involved and the benefits that each one of them has to offer. The product with the lowest cost and the highest benefits should be chosen.
Answer:
$35,000
Explanation:
According to accounting standard IFRS 16 Property, Plant and Equipment is initially recorded at its cost. Estimated market value and offer price will not be considered to record this transaction. Cost incurred for this equipment is as follow:
Cash payment = $15,000
Note payable = $20,000
Total Cost = $15,000 + $20,000 = $35,000
Answer:
Cost of goods sold to be reported in consolidated financial statement = $1,000,000
Explanation:
Whenever there is 100% or more than 50% holding in a company, then equity method is followed under which all of the items are to be consolidated, but in case where there are inter transfers that is transfer from holding to subsidiary or vice-versa then such transactions, profit not realized is to be eliminated.
In case where inventory is transferred to subsidiary after adding profit by holding company, then in case if that inventory is sold to third party by year end then entire profit is recognized even the profit added by holding to cost of goods sold to subsidiary.
Where in case such inventory is not sold further by subsidiary to third party and is still held in the stock then such profit added on sale by holding to subsidiary is eliminated.
In our case the entire inventory is sold to third party by the year end.
Therefore, entire profit will be recognized and cost of goods sold to be shown in consolidated financial statements = $600,000 + $400,000 = $1,000,000.
This can be a deterrent for engaging in practices that are ethically wrong during underwriting process.
Knowing that they could be fined large amount of money if found to be engaging in acts that ethically incorrect will serves to discourage investment banking firms from such acts.<span />
Answer:
Consider the following explanation
Explanation:
Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.
