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.
Answer:
b. $1,000
Explanation:
In this question we have to apply the unitary method which is shown below:
Given that
Payment = $20,000
Number of gallons of water = 5,000,000
Extracts = 250,000 gallons
So, the total depletion would be
= (Payment × extracted gallons) ÷ (Number of gallons of water)
= ($20,000 × 250,000 gallons) ÷ (5,000,000 gallons)
= $1,000
An impaired driver refers to someone who is under the influence of alcohol and is driving. If you are sharing the road with such a person, it is safest to drive behind such a person. You can take further action by parking beside the road, note down the vehicle's number and then call the appropriate patrol or emergency to inform them about the driver. This will ensure that such a driver is gotten off the highway.
<u>Answer:</u>Divide the profits equally for all the members.
<u>Explanation:</u>
The capital accounts should mention the allocation of each members profit share and the capital contribution. The ownership of the members can be identified with this contribution. The profit sharing depends on the percentage share of the members.
If there is any flexibility in the arrangement then the it has to be mentioned clearly in the agreement. In StartUp investors case there is no operating written agreement so the profits will be divided among the members equally. If this is done in knowledge of all the members then the losses will also be borne by them.
