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ExtremeBDS [4]
3 years ago
8

At a recent staff meeting, the vice president of marketing appeared confused. The controller had assured him that the parent com

pany and each of the subsidiary companies had properly accounted for all transactions during the year. After several other questions, he finally asked, "If it has been done properly, then why must you spend so much time and make so many changes to the amounts reported by the individual companies when you prepare the consolidated financial statements each month? You should be able to just add the reported balances together." Required: Prepare an appropriate response to help the controller answer the marketing vice president's question.
Business
1 answer:
hammer [34]3 years ago
6 0

Answer:

The accountant might be having issues with consolidating the reports of the individual subsidiary.

Explanation:

Below are appropriate responses:

(1) The accounting policies, principles adopted by each subsidiary might be different, hence this could lead to discrepancies and readjustments of the report by the controller.

(2) In order to ensure fair presentation and accuracy of financial information of the subsidiaries, the controller, might need to look over the financial statements.

(3) If the subsidiaries are foreign subsidiaries, the controller would need to translate the financial information, using the functional currency.

(4) Where, they are intra-group transactions (goods in transit, cash in transit, intra group sales and transfers), the controller would need to make adjustments of those transactions .

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svp [43]

Answer:

$7,250

Explanation:

You can deduct medical expenses <u>that exceed</u> 7.5% of your AGI (changes, but is currently at this level).

170,000 x .075 = 12,750

20,000 - 12,750 = $7,250

I hope this helps!

-TheBusinessMan

7 0
3 years ago
The predetermined manufacturing overhead rate for the year was 140% of direct labor cost; employees were paid $17.50 per hour. I
Aleks04 [339]

Answer:

D. $ 367.500

Explanation:

We have to first compute the total direct labor cost. This is done by multiplying the estimated direct labor hours with the hourly rate.

Total Direct Labour costs $ 17.50 per hour * 15,000 hours  =  $ 262,500

Estimated manufacturing overhead per the data in the question is 140 % of Direct labor cost,

Estimated manufacturing overhead is $ 262,500 * 140 % = $ 367,500

5 0
3 years ago
Hawk Corporation purchased 1,000 Diamond Corporation bonds in 2015 for $500 per bond and classified the investment as securities
jonny [76]

Answer: C) A debit of $200,000.

Explanation:

In 2018, Hawk sold all the Diamond Investment bonds at $700.

The amount of reclassification adjustment would be;

= Sales price - original purchase price

= (1,000 * 700) - (1,000 * 500)

= $200,000

The amount should be debited to reverse the gains recorded over the other years.

3 0
3 years ago
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad
hoa [83]

Answer:

$3,700

Explanation:

Given that

Adjusted gross income for the year 2019 = $415,300

Children ages = 4, 7, and 18 as dependents

Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is

= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)

= ($2,000 × 2 + $500) - ($50 × 16)

= $4,500 - $800

= $3,700

After $400,000 the $50 is decreased for each and every $1,000

5 0
3 years ago
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Zigmanuir [339]

Answer:

data processing system

4 0
3 years ago
Read 2 more answers
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