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TiliK225 [7]
4 years ago
5

When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, whic

h of the following statements is true?
a. Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the noncontolling interest percentage for downstream transfers.
b. Income from subsidiary will be higher by the amount of the ending inventory profit multiplied by the noncontrolling interest percentage for downstream transfers.
c. Incrom from subsidiary will be reduced for downstream ending inventory profit but not for upstream profit, before the effect of the noncontrolling interest.
d. Income from the subsidiary will be reduced for upstream ending inventory profit but not for downstream profit, before the effect of the nonconrolling interest.
e. Income from subsidiary will be the same for upstream and downstream profit.
Business
1 answer:
scZoUnD [109]4 years ago
6 0

Answer:

a. Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the noncontolling interest percentage for downstream transfers.

Explanation:

When we transfer inventory from subsidiary to holding there will be some profit element included in cost. so when we consolidate the account of subsidiary to its holding at the time of reporting we should removed that unrealised profit included in the inventory.

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West Electronic Corporation sources goods and services for its electronics products from the different locations around the glob
anzhelika [568]

Answer: (D) Globalization of production

Explanation:

  The globalization of the production is the process of sourcing the various types of products and the services which involve the capital flows and the trading worldwide.

The production of the various types of products and the services at very low cost is one of the main advantage of the globalization.

According to the given question, the globalization of production is one of the practicing that helps in demonstrating the given west electronic corporation situation.  

 Therefore, Option (D) is correct answer.

4 0
3 years ago
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $61 per bond and classified the investment as securities
Pavel [41]

Answer:

Explanation:

In this question ,we take the difference of the per bond value based on the year. The computation is shown below:

During 2015 to During 2017:

= Number of bonds purchased × (December 31, 2017 value - 2015 value)

= 10,000 × ($92 - $61)

= 10,000 × $31

= $310,000

During 2018:

= Number of bonds purchased × (December 31, 2018 value - 2017 value)

= 10,000 × ($146- $92)

= 10,000 × $54

= $540,000

So, the total amount would be

= $310,000 + $540,000

= $850,000

This amount which reflect in the income statement as a realized gain

6 0
3 years ago
A certain drug treatment cures 90% of cases of hookworm in children. Suppose that 20 children suffering from hookworm are to be
damaskus [11]

Answer:

78% of 2.

Explanation:

Get a calculator. Press ON, then press 78 WITH PERCENT IF APPLICABLE. Times 2. Enter, thats your answer is what you get.

8 0
2 years ago
Which of the following is not a financial intermediary?
ValentinkaMS [17]

Answer:

i think commercial banks aren't

5 0
3 years ago
Bella is a discount furniture store. Most of the items in the store are overstock and hence tend to be more inexpensive than oth
marysya [2.9K]

Answer:

<u>Reference Pricing</u>

Explanation:

Reference pricing strategy refers to a pricing mechanism whereby the products are priced slightly lower than competitor's products.

When such a pricing strategy is followed, the store owners provide heavy discounts to the buyers to encourage sales.

In the given case, the store deals in discounted furniture. Bella displayed manufacturer's suggested retail price so as to let buyers know of the savings they shall make upon purchase.

Such pricing of goods at a heavy discount thereby showing savings, indicates reference pricing strategy being followed.

4 0
4 years ago
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