Answer:
Back Stop, Inc.
1. The amount of gain or loss that will be recognized by the company:
a. $30,000 gain
b. $80,000 loss
2. The corporation's basis in the property after the transfer:
a. $150,000
b. ($80,000)
Explanation:
1) Data and Calculations:
a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000
b. Unrealized loss $80,000 Capital, Kelly $80,000
2) The building contributed by Kelly is worth $150,000 for the corporation. However, the contribution by John is worth nothing in real terms. Instead, an unrealized loss is being suffered by the corporation.
Answer:
The correct answer is: Management by Objectives (MBO).
Explanation:
Management by Objectives (<em>MBO</em>) is a process in which a manager an employees agree on specific performance goals and then develop a plan to reach those goals. First outlined in Peter Drucker's 1954 book "<em>The Practice of Management</em>", MBO ensures better employee participation and commitment while aligning objectives throughout an organization.
It is reported as foot notes in cashflow statement or in the notes of financial statements.
When an income statement is converted to cash flows from operational operations, noncash items like as depreciation and nonoperating profits and losses are not included. Non-cash investing and financing entails making an investment or purchase using financial instruments other than cash.
The Generally Accepted Accounting Principles (GAAP) are a collection of generally observed financial reporting accounting standards and regulations. The four main constraints of GAAP are objectivity, the materiality, the consistency, and the prudence.
Companies are required by both IFRS and US GAAP to declare any substantial non-cash investment and financing operations, either as a footnote at the bottom of the statement of the cash flows or in notes to the financial statements.
Therefore, the answer is the bottom of the statement of the cash flows or in the notes to financial statements.
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Answer:
(b) purchase contract with no contingencies.
Answer:
<u><em>The corrects answer is:</em></u> A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
Explanation:
Cannibalization is a market strategy that can occur without the company's intention, and can be defined as when a company replaces a product on the market with a similar new product, as in the example above, when a toothpaste manufacturer adds a new one line of toothpaste (containing sodium bicarbonate) to its product line.
This strategy can be detrimental to the company, since there may be less sales of an existing product for a similar product, which consequently generated higher production costs for the organization, therefore it would not be characterized as gains for the company, but as losses , as this strategy would not increase the company's market share, but a detriment of one product by another.
Therefore, it is necessary that there is constant monitoring of each product in the company so that cannibalization does not occur and each product contributes to the company's profitability individually.
