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3 years ago

If a surplus exists in a market we know that the actual price is

Business

1 answer:

Lelechka [254]3 years ago

6 0

Answer:

The price is above equilibrium; quantity supplied is more than quantity demanded.

Explanation:

A surplus in the market means the actual price of a product is above the equilibrium point. The quantity supplied is much more than the quantity demanded. A considerable population of buyers will not afford the product due to its high price.

Higher prices will cause the demand for goods to decrease in the market. When there is a surplus in the market, sellers will tend to reduce the price hence increasing the quantity demanded. This will decrease the quantity supplied. The buyers will now afford the product.

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"When a parent uses the partial equity method throughout the year to account for its investment in an acquired subsidiary, which

Sedaia [141]

Options for the first question:

a? Goodwill will be recognized if acquisition value exceeds fair value of net assets acquired.

b? Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

c? Subsidiary net assets are valued at their book values before consolidating entries are made.

d? Parent company net income will exceed controlling interest in consolidated net income when fair value of depreciable assets acquired exceeds book value of depreciable assets.

e? Parent company net income will equal controlling interest in consolidated net income when initial value, book value, and fair value of the investment are equal.

Information regarding the second question:

Book Value Fair Value

Buildings (10-year life) $10,000 $8,000

Equipment (4-year life) $13,000 $17,000

Land $5,000 $12,000

In consolidation at January 1, 2017, what adjustment is necessary for Hogan's Equipment account?

Answer:

Answer to the first question:

B) Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

Answer to the second question:

The fair market value of the equipment is higher than the book value, therefore the equipment account must increase by = $17,000 - $13,000 = $4,000

Explanation:

The partial equity method is used when the company's stake is not significant in the subsidiary or when the parent doesn't exercise operating control over the subsidiary.

3 0

4 years ago

The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va

s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as $\frac{Fixed\ cost}{Contribution\ per\ unit}$

Thus, break even point in units only in two cases,

Fixed cost is reduced that is decreased,
Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0

4 years ago

XZYY, Inc. currently has an issue of bonds outstanding that will mature in 16 years. The bonds have a face value of $1,000 and a

borishaifa [10]

Answer: 10.66%

Explanation:

The expected quoted annual rate of return when the bonds are bought and being held until maturity will be calculated thus:

Coupon payment = 1000 × 13% = 130

The Yield to Maturity formula will be:

= Rate(maturity period, coupon payment, -price, fave value)

= Rate(16, 130, -1176, 1000)

Yield to Maturity = 10.66%

Therefore, the expected quoted annual rate of return is 10.66%.

5 0

3 years ago

An actionable segment is one that A.allows the marketing mix to operate.B. has resources to purchase the product.C. perceives th

adell [148]

Answer:

a. allows the marketing mix to operate

4 0

4 years ago

Caroline and her husband Chris got divorced in May of this year. During the year, Caroline provided all the support for herself

nignag [31]

Answer:

D. Single

Explanation:

Divorce eliminates answer options B and C. Hans'age indicates that he is an adult despite his earnings, thus Caroline could not apply as head of household (answer option A).

Single is the most favorable filing status due to she is unmarried and does not qualify for Head of Household.

5 0

4 years ago