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Delvig [45]
3 years ago
13

When an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, th

e full amount (100%) of the decrease in profit is deducted from consolidated net income available to the parent shareholders.
Business
1 answer:
joja [24]3 years ago
3 0

Answer:

TRUE

Explanation:

It is true that when an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, the full amount (100%) of the decrease in profit is deducted from consolidated net income available to the parent shareholders.

Unrealized profits are the profit element not earned because they were not sold to third parties, it was basically a transfer between one company in a group (for example subsidiary) and another company in the same group (for example to the parent company).  

At the year-end, if the goods are still in inventory, any profit thereon cannot be recognized but eliminated. Therefore for consolidation purposes, this unrealized profit element is taken out of inventory value in order to reduce the inventory value back down to the lower of cost or net realizable value.  

This is done by crediting the inventory amount and debiting consolidated retained earnings.

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Suppose the supply function for x units of a product at a price of p dollars is given by p=10+5ln(3x+1). How many units of this
Dovator [93]

Answer:

x = 993.32

Explanation:

Given:

p=10+5ln(3x+1) , where p = $50

50 = 10 + 5ln(3x+1)

50-10 = 5ln(3x+1)

40 = 5ln(3x+1)

40/5 = ln(3x+1)

8 = ln(3x+1)

3x + 1 = e^{8}

Using calculator e^{8} = 2,980.96

3x + 1 = 2,980.96

3x = 2,980.96 - 1

3x = 2,979.96

x = 2,979.96 / 3

x = 993.32

Therefore, 993.32 units would be supplied.

8 0
3 years ago
Cuba is a command economy that suffered a decline in economic growth because of a cut in the aid provided by the former Soviet U
katen-ka-za [31]

Answer:

Experience an inward shift of its production possiblity curve.

Explanation:

Production possiblity curve is a graphical representation of the maximum number of products that a company can produce, if it produce only two product using all the resources efficiently. The maximum production possiblity of one product is shown on one side graph and another product on other side to compare which product can be produced to reduce cost and wastage while maximizing the profit. This also help the management to know the effecient use of resources or factor of production; Land, labour, capital and entrepreneurship. Therefore, lack of resources to Cuba have lead it´s economy to decline.

4 0
3 years ago
Neuman Corporation Convertible Bonds The following data apply to Neuman Corporation's convertible bonds: Maturity: 10 Stock pric
Natalija [7]

Answer:

A. The bond’s conversion ratio is 28.57

B. The bond’s conversion value is $857.14

C. The bond’s straight debt value is $798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

Explanation:

A. In order to calculate the bond’s conversion ratio we would have to calculate the following formula:

bond’s conversion ratio=par value/conversion price

According to the given data:

par value=$1,000

Conversion price=$35

Therefore, bond’s conversion ratio=$1,000/$35

bond’s conversion ratio=28.57

B. To calculate the bond’s conversion value we would have to make the following calculation:

bond’s conversion value=bond’s conversion ratio*Stock price

bond’s conversion value=28.57*$30.00

bond’s conversion value=$857.14

C. To calculate the bond’s straight debt value we would have to calculate the following formula:

bond’s straight debt value=PV(0.08,10,50,1,000)

bond’s straight debt value=$798.70

D. The minimum price at which Neuman’s bonds should sell is $857.14

7 0
2 years ago
Liz meija is employed as a social worker in a host setting. she is most likely employed in a(n) ______.
olga_2 [115]
Liz Meija is emplayed as a social worker in a host setting. She is mosy likly employed in an agency.
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FOOT CREAM MINI CASE: Athlete's Aid is a foot cream designed to prevent athlete's foot with once- daily application after shower
alex41 [277]

Answer:

The correct answer is:  negative message framing.

Explanation:

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3 0
3 years ago
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