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TiliK225 [7]
3 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]3 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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Distinguish among the three methods of allocating the costs of support departments to operating departments.
ale4655 [162]

The three methods of allocating the costs of support departments to operating departments are:-

a. The direct (assignment) method ignores all services provided by one support organization to another support organization. Allocate the cost of each support department directly to the

operations department. The

b. step-down (allocation) method sequentially allocates support department costs to other his

support departments and operations departments in such a way that the

partially approves the mutual service of all support departments.

c. The Mutual (Attribution) process allocates support department costs to operations by fully authorizing the mutual services provided between all support departments.

Learn more about methods of allocating here:brainly.com/question/2986318

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7 0
1 year ago
CAPITAL BUDGETING CRITERIA Your division is considering two projects. It’s WACC is 10%, and the projects’ after-tax cash flows (
Reil [10]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
3 0
2 years ago
5. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $90 per share. You own 100 shares of the s
UkoKoshka [18]

Answer:

total value be in the stock $9,000

Explanation:

given data

currently priced = $90 per share

Number of Stocks = 100 share

solution

we get here first Value of Position that is express as

Value of Position = $90  × 100

Value of Position = $9,000

and

After stock split

Number of Stocks will be

Number of Stock  = 100 × 3 = 300

and

Price per Share will be

Price per Share = \frac{90}{3}  

Price per Share = $30

so

Value of Position = 30 × 300

Value of Position = $9,000

8 0
3 years ago
Which of the following combinations should be avoided? a. high price and high quality b. low price and low quality c. heavy prom
NNADVOKAT [17]

Answer: heavy promotion and low (exclusive) availability

Explanation:

The wrong combination is high promotion and low availability, because when a product is highly promoted it would lead to high interest in that product from the consumers, this would lead to a high demand for that product from customers. And this high demand needs to be met with high supply, which is not the case here, therefore scarcity would set in.

4 0
2 years ago
ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage
ikadub [295]

Answer:

a. Operating Income = Sales - Production Cost - Depreciation Expense

Operating Income = $100,000 - $82,600 - $6,000

Operating Income = $11,400

b. Average Investment = (Initial Equipment Cost + Residual Value) / 2

Average Investment = ($60,000 + $0) / 2

Average Investment = $60,000 / 2

Average Investment = $30,000

c. Accounting Rate of Return = (Operating Income / Average Investment) * 100

Accounting Rate of Return = ($11,400 / $30,000) * 100

Accounting Rate of Return = 0.38 * 100

Accounting Rate of Return = 38%

7 0
2 years ago
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