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Finger [1]
3 years ago
10

When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true? A) Inc

ome from subsidiary is not recognized until there is an entire year of consolidated operations. B) Income from subsidiary is recognized from date of acquisition to year-end. C) Excess cost over acquisition value is recognized at the beginning of the fiscal year. D) No goodwill can be recognized. E) Income from subsidiary is recognized for the entire year.
Business
1 answer:
Kamila [148]3 years ago
4 0

Answer:

B) Income from subsidiary is recognized from date of acquisition to year-end.

Explanation:

When an individual or a company purchase another business, they are responsible for all the gains and losses generated by that business starting from the exact moment that the sales transaction has been completed. E.g. if I buy a business on January 20, at 10 AM, I am completely responsible for the things that happen in the company after 10 AM.

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A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimate
MrMuchimi

Answer:

Dr Seller Account $100

Cr Buyer Account      $100

Explanation:

The property sold on 15th of the month by Mr. A to Mr. B and the utility bill received later of this month would be split between Mr. A and Mr. B. The basis for the split of the utility bills would be the share that Mr. A utilized the facilities and in this scenario, it is $100. Hence the buyer Mr. B has receivable of $100 and the seller Mr. A has a liability payable of $100 amount.

Hence the buyer will debit the bill by $100 receivable and the Seller will debit the bill owed to buyer by $100.

3 0
3 years ago
Why is it important that the military be able to evacuate supplies and people when necessary? When might they need to do this?
Marrrta [24]
It is important for the military to be able to evacuate supplies when necessary because then they can ensure the supplies will be safe the same with people. they do this during a war, major storms, and when plagues happen. 
5 0
3 years ago
Marigold Corp. has the following inventory data: July 1 Beginning Inventory 31 units at $16 $496 7 Purchases 109 units at $16 17
Mrac [35]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

July 1: Beginning Inventory 31 units at $16 $496

July 7: Purchases 109 units at $16 $1744

July 22: Purchases 16 units at $17 $272

A physical count of merchandise inventory on July 30 reveals that there are 39 units on hand.

FIFO (first-in, first-out)

Units sold= (31 + 109 + 16) - 39= 117

COGS= 31*16 + 86*16= $1,872

7 0
3 years ago
One way of reducing the amount of interest you pay on a loan is to:
zavuch27 [327]
It’s the second one
(Send extra money each month)
Hope this helps!
6 0
3 years ago
Read 2 more answers
Which document establishes an initial record of the receipt of the inventory?​?
MrRa [10]
The document which establishes an initial record of the receipt of an inventory is THE RECEIVING REPORT.
The receiving report is usually used by a business to record the details of the products that are received from suppliers. The record documents what is owned to supplier based on the number of goods accepted and the ones that are returned.<span />
7 0
3 years ago
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