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andrezito [222]
3 years ago
13

Jax Company used the acquisition method when it acquired its investment in Saxton Company. Jax now sells some of its shares of S

axton such that neither control nor significant influence exists. Which of the following statements is true?
A.The difference between selling price and acquisition value is recorded as a realized gain or loss.
B The difference between selling price and acquisition value is recorded as an unrealized gain or loss.
C. The difference between selling price and carrying value is recorded as a realized gain or loss.
D. The difference between selling price and carrying value is recorded as an unrealized gain or loss.
E. The difference between selling price and carrying value is recorded as an adjustment to retained earnings.
Business
1 answer:
Gemiola [76]3 years ago
5 0

Answer:

C. The difference between selling price and carrying value is recorded as a realized gain or loss.

Explanation:

In the case of the acquisition method, the role of significant influence will not be there. Since the shares are sold which shows a realized gain or loss by taking the difference between the selling price and carrying value.  

As through the selling price we know about the gain or loss amount, and the carrying value would represent the book value which records in the books of accounts.  

Hence, the correct option is C.

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Answer:

The correct answer would be option D, Consumers.

In the game of economics, producers get information they need to determine how much people are willing to pay for a good or service from Consumers.

Explanation:

In the game of economics, consumers are the ones who will consume the products produced by the companies/producers, and they are the ones who will determine how much they are wiling to pay for a good or service.

For example, if a product's price is set at 5 dollars but no one is willing to pay 5 dollars for that product, then producers have to lower the prices to meet the customers' demands, and to sell their products.

So in this way, customers determine the prices of the products.

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In order to be impartial and lawful, a pre- inspection agreement must be
lakkis [162]
A. paid for by the lender. 
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Answer:

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