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lana [24]
3 years ago
7

On january 3, 2013, persoff corporation acquired all of the outstanding voting stock of sea cliff, inc. In exchange for $6,000,0

00 in cash. Persoff elected to exercise control over sea cliff as a wholly owned subsidiary with an independent accounting system. Both companies have december 31 fiscal year-ends. At the acquisition date, sea cliff's stockholders' equity was $2,500,000 including retained earnings of $1,700,000.Persoff pursued the acquisition, in part, to utilize sea cliff 's technology and computer software. These items had fair values that differed from their values on sea cliff 's books as follows:
Business
1 answer:
konstantin123 [22]3 years ago
3 0

Answer:

It is a wholly owned subsidiary so the Income Statement will include the figures of both the companies in the consolidated Income Statement. However the equity side of Balance Sheet will include share capital of only the parent company and include retained earnings of both the companies, assets will added up of the two companies and reported in the Balance Sheet however goodwill of the subsidiary will also be reported and liabilities will also be added up and reported in a same manner.

Explanation:

Because the data is not completely provided a general idea is provided here:

It is a wholly owned subsidiary so the Income Statement will include the figures of both the companies in the consolidated Income Statement. However the equity side of Balance Sheet will include share capital of only the parent company and include retained earnings of both the companies, assets will added up of the two companies and reported in the Balance Sheet however goodwill of the subsidiary will also be reported and liabilities will also be added up and reported in a same manner.

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The phase of the business cycle that includes a period of decline in GDP and
Anarel [89]

Answer:

Contraction:

Explanation:

The contraction period is the time between the peak  (highest growth rate) and the trough ( the lowest growth rate).  At contraction, the GDP value declines from its peak to the lowest or negative growth rate. Contraction means a shrink in economic activities.

During contraction, the unemployment rate rising as employers lay-off workers due to reduced demand. Incomes and profits decline, and the GDP value decreases to low or negative values. The contraction period starts with a recession, which is a decline in GDP value for two consecutive quarters.

4 0
3 years ago
Read 2 more answers
Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding
Burka [1]

Answer:

$2.73

Explanation:

<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>

where,

Earnings Attributed to Common Stockholders = $420,000

and

Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000

therefore,

Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73

Conclusion

Rudyard's diluted EPS is $2.73

7 0
2 years ago
Firms that hire outside consultants can reduce the impact of moral hazard by: A. hiring work on a fixed-fee basis B. monitoring
marishachu [46]

Answer: Option C

Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.

In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.

4 0
3 years ago
7. Give me your pen, please<br>​
mash [69]
Okay no problem it cost 10 dollars tho
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