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Temka [501]
3 years ago
9

One company acquires another company in a combination accounted for under the acquisition method. "The acquiring company decides

to apply the initial value method" in accounting for the combination. What is one reason the acquiring company might have made this decision?
(A) It is relatively easy to apply.
(B) It is the only internal reporting method allowed by generally accepted accounting principles.
(C) When the initial method is used, no worksheet entries are required in the consolidation process.
(D) It is the only method allowed by the SEC
(E) Operating results on the parent's financial records reflect consolidated totals.
Business
1 answer:
Alik [6]3 years ago
3 0

Answer: Option E: Operating results on the parent's financial records reflect consolidated totals.

Explanation: Operating results on the parent's financial records reflect consolidated totals is the reason the acquiring company might have made this decision

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Current Attempt in Progress Suppose at December 31 of a recent year, the following information (in thousands) was available for
alex41 [277]

Answer:

                                           OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods                 395,010  

Average Inventory            148,500  

DAYS IN INVENTORY        137  

Explanation:

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year , the take the Total Cost of Goods and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 2,66  

To find the days in inventory we have to divide 365 (days of the year) and divide it by the Inventory Turnover, 2,66, the result is 137 days.

      END  START

$172,000   $125,000  Inventory

$ 768,000  Sales Revenue

$ 395,010  Cost of Goods Sold

OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods  395,010  

Average Inventory  148,500  

DAYS IN INVENTORY  137  

4 0
3 years ago
Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inve
Radda [10]

Answer:

The total cost of goods sold =  $37,500

Explanation:

Given:

Beginning inventory = 10,000 units at $3

Purchase inventory = 5,000 units at $4

Purchase inventory = 5,000 units at $5

Sale inventory = 10,000 units at $10

Total inventory units = [10,000 + 5,000 +5,000]

Total inventory units = [20,000]

Total Cost of inventory units = [(10,000×$3) + (5,000×$4) + (5,000×$5)]

Total Cost of inventory units = [$30,000 + $20,000 + $25,000]

Total Cost of inventory units = [$75,000]

Average price per unit = Total Cost of inventory units / Total inventory units

Average price per unit = $75,000 / 20,000

Average price per unit = $3.75

The total cost of goods sold = 10,000 units sold × $3.75

The total cost of goods sold =  $37,500

3 0
3 years ago
In January 2007, XM enjoyed about 58 percent of satellite radio subscribers, and Sirius had the remaining 42 percent. Both firms
Viktor [21]

Answer:

The correct answer is 3

good luck ❤

Explanation:

8 0
3 years ago
Production Volume4,000 Units5,000 UnitsDirect Materials$85.80 per unit$85.80 per unitDirect Labor$56.10 per unit$56.10 per unitM
guapka [62]

Answer:

4300 units would cost  $ 898461 or $ 208.9 ≅ $ 209 per unit

Explanation:

Production Volume                   4,000 Units       5,000 Units

Direct Materials                 $85.80 per unit        $85.80 per unit

Direct Labor                     $56.10 per unit             $56.10 per unit

Manufacturing overhead   $73.60 per unit           $62.10 per unit

Total Manufacturing Costs   $ 215.5 per unit         $ 203.7 per unit

The best estimate of the total cost to manufacture 4,300

4000 units at $ 215.5 = $ 862,000

5000 units at $ 203.7= $1018500

9000 units would Cost = $ 862,000+$1018500= $ 1880500

We have taken the total of the two costs and then divided with the number of 9000 units to get an average price as the fixed costs are decreasing as the number of units increase from 4000 to 5000.

4300 units would cost = $ 1880500/ 9000 * 4300= $ 898461 or $ 208.9 ≅

$ 209 per unit

5 0
2 years ago
Which formula best describes the amount an insurance company will pay you for your loss?
Aleksandr-060686 [28]
A) Payment = Loss - Deductible
because you always need to pay your deductible so you won't get this amount of money back
6 0
3 years ago
Read 2 more answers
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