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CaHeK987 [17]
3 years ago
15

On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for $450,000. On that date, Uline had com

mon stock of $90,000 and retained earnings of $280,000. Equipment and land were each undervalued by $25,000 on Uline’s books. There was a $10,000 overvaluation of Bonds Payable, as well a $20,000 undervaluation of inventory.
The combined consolidation entries necessary for a date of acquisition balance sheet include all of the following except:

(A) Common Stock debit, $90,000
(B) Retained Earnings credit, $280,000
(C) Equity Investment credit, $450,000
(D) No debits or credits to goodwill
Business
1 answer:
kumpel [21]3 years ago
7 0

Answer:

(B) Retained Earnings credit, $280,000

Explanation:

The following are to be considered in combined consolidation entries:

1. Common stock

2. Equipment and lands

3. Bonds payable

4. Inventory, etc

There are many accounts required in combining the consolidation entries.  

So, the retained earning would not be considered as we eliminate those account which represents only one single company  

So, retained earning represent a single company only. hence, we eliminate the retained earning amount

As we want to make consolidated so we combined the accounts accordingly. Therefore, other accounts would be considered

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galben [10]

Answer:

No, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.

Explanation:

Marginal utility is the benefit that a consumer derives from consuming an extra unit of a product. To maximise satisfaction consumers tend to go for products that will give them high satisfaction at a low cost.

In the given scenario the cost of a unit of ice cream cone is $3.05, and the satisfaction or benefit is $3. The cost is higher than satisfaction gained. A consumer will not buy the ice cream under these conditions. They will rather look for an alternative that will give high satisfaction at low cost.

5 0
3 years ago
A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
igor_vitrenko [27]

Answer:

30%

Explanation:

Credit utilization can be regarded as the percentage of the total credit that individual is utilizing. It's financially advisable to keep the credit utilization ratio in order to have a good credit score.

To calculate credit utilization rate;

✓ one need to know the information about one credit account.

/✓Then divide the total balance by the total credit limit

✓then multiply by 100

For instance if the total balance is $5000 and total credit limit is $25000 then the credit utilization ratio is ($5000/$25000)×100%

= 20%

Whenever the credit utilization ratio is

higher than 30% it will bring about the decrease of credit score, as a result of this , the lender can be worried because he/she may think the ratio is overextended, and paying back new debt might not be easy.

Therefore, with general rule of thumb is to keep your credit utilization rate at 30% or lower. your approximate credit utilization rate for this current billing cycle is 30%

5 0
3 years ago
uses a perpetual inventory system and reported $526,000 of inventory at the beginning of the month based on a physical count of
kakasveta [241]

Answer:

$16,950

Explanation:

The computation of the shrinkage that occurred during the month is shown below:

Balance inventory = Beginning Inventory + Inventory purchased - Inventory sold

= $526,000+ $59,200 - $40,250

= $544,950

Now the shrinkage inventory is

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= $544,950 - $528,000

= $16,950

7 0
3 years ago
A) Why is ethical relativism considered to be self-contradictory?
tangare [24]

Answer:

El relativismo no puede ser contradictorio porque no afirma ni niega nada. La expresión de una actitud moral consiste en valorar la diversidad.

Explanation:

El relativismo no puede ser contradictorio porque no afirma ni niega nada. La expresión de una actitud moral consiste en valorar la diversidad.

4 0
3 years ago
As an it professional you may support databases, but not do any application coding, why do you think it is still important to un
Anarel [89]
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