Answer:
$2,560,000
Explanation:
impairment loss = division's book value - division's fair market value = $3,080,000 - $2,320,000 = $760,000
Assets held for sale are no longer depreciated, but they must be recorded at lower value between carrying cost and fair market value. Since the fair market value is lower than carrying value, then an impairment loss results.
loss on discontinued operations = loss from operations 2019 + impairment loss = $1,800,000 + $760,000 = $2,560,000
Answer: Liability of foreignness
Explanation: In simple words, the extra cost incurred by a company operating in a foreign country as compared to the local companies over there is called the liability of foreignness.
In the given case, the American company incurred extra cost in china due to their lack of local knowledge and discrimination from the locals.
Thus, from the above we can conclude that Malt hanks faced liability of foreignness.
Answer:
$600 loss
Explanation:
A call option is defined as a contract that exists between ba buyer and seller of a call option to exchange securities held at a particular price within a specific period.
To calculate the profit realised on the investment
Profit from call option= (150- 139) * 100
Profit from call option= $1,100
Profit from premium= 17 * 100
Profit from premium= $1,700
Profit on investment= Profit from call option - Profit from premium
Profit on investment = 1,100 - 1,700 = -$600
So there is a loss of $600