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Mice21 [21]
3 years ago
14

1. A parent provides consulting services to its wholly-owned subsidiary during the year. The parent charged the subsidiary $600,

000 for the services. The parent's cost of providing the services is $520,000. The companies use service revenue and service expense, as appropriate, to record this transaction on their own books. The consolidation eliminating entry or entries related to the intercompany services include an adjustment to the subsidiary's accounts as follows: A. a credit to service revenue, $600,000. B. a debit to service expense, $520,000. C. a credit to service expense, $600,000. D. a debit to service revenue, $520,000.
Business
1 answer:
Fed [463]3 years ago
6 0

Answer:

C

Explanation:

When consolidating parent and a wholly-owned subsidiary we aim to eliminate entries related to the inter company services. Since the subsidiary had recorded a debit to service expense when it was rendered, the adjusting entry would be a credit to the service expense amount by the same figure charged i.e. $600,000 in this case

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How much will the peruvian government spend on servicing.
sp2606 [1]

Answer:

4,000 m

Explanation:

4,000 million Peruvian sol

5 0
2 years ago
Pettit Ice Cream Company produces various ice cream products for which demand is highly seasonal. The company sells more ice cre
Rashid [163]

Answer:

a) Fixed costs = $22,000

b) $70,000

c) The high low cost method is generally inaccurate because it only considers the extremes, the highest and lowest costs and activity levels. Generally costs are not linear, but they might follow a certain tendency. The advantages of the high low cost method is that it is fairly accurate when costs are stable, plus it is much simpler to calculate.

d) Assuming that costs follow a certain tendency, regression analysis is much more exact since it analyses the relationship between different data and different variables. When you analyze only 2 variables, a linear regression analysis will serve you. but if you need to analyse more than two variables, then you must use a multiple regression analysis.

The R² statistic basically measures how one variable's variance is affected by other variables. E.g. if R² is 0.75, then 75% of the variance of A will be explained by the variance of B.

Explanation:

variable cost using high low cost method = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($82,000 - $46,000) / (50,000 - 20,000) = $36,000 / 30,000 gallons of ice cream = $1.20 per gallon of ice cream

fixed costs = $82,000 - (50,000 x $1.20) = $22,000

40,000 gallons

$22,000 + (40,000 x $1.20) = $70,000

how regression analysis improves accuracy of high low cost method

3 0
3 years ago
Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ
kirill115 [55]

Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

8 0
3 years ago
The Fed buys​ $100 million of bonds from the public and also lowers the reserve requirement r. What will happen to the money​ su
Alenkasestr [34]

Answer:

The correct answer is option A.

Explanation:

When the government buys from the public it will pay them back. So the purchase of $100 million of bonds by the government means $100 million was paid to the public.  

Also, if the reserve requirement is lowered, it means the commercial banks can increase lending.  

Both these actions combined will lead to an increase in the money supply.

3 0
2 years ago
Keidis Industries will pay a dividend of $4.35, $5.45, and $6.65 per share for each of the next three years, respectively. In fo
ICE Princess25 [194]

Answer:

$56.19

Explanation:

Current stock price can be determined by calculating the present value of the dividend payments

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 4.35

Cash flow in year 2 = 5.45

Cash flow in year 3 = 6.65

Cash flow in year 4 = 61

I = 9.4

PV = $56.19

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

4 0
2 years ago
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