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Lyrx [107]
4 years ago
8

Cooper Grant is the president of Acme Brush of Brazil the wholly owned Brazilian subsidiary of U.S.-based Acme Brush Inc. Cooper

Grant’s compensation package consists of a combination of salary and bonus. His annual bonus is calculated as a predetermined percentage of the pretax annual income earned by Acme Brush of Brazil. A condensed income statement for Acme Brush of Brazil for the most recent year is as follows (amounts in thousands of Brazilian real [BRL]):
Sales . . . . . . . . . . . . . . . . . . . . . . . . Expenses . . . . . . . . . . . . . . . . . . . . . Pretax income . . . . . . . . . . . . . . . . .
BRL10,000 9,500 BRL 500
After translating the Brazilian real income statement into U.S. dollars, the condensed income statement for Acme Brush of Brazil appears as follows (amounts in thousands of U.S. dollars [US$]):
Sales . . . . . . . . . . . . . . . . . . . . . . . . Expenses . . . . . . . . . . . . . . . . . . . . . Pretax income (loss) . . . . . . . . . . . . .
US$3,000 3,300
US$ (300
Required:
a) Explain how Acme Brush of Brazil’s pretax income (in BRL) became a U.S.-dollar pretax loss.
The Acme Brush of Brazil pre tax income in BRL became a United States dollar pretax loss because the dollar if financially stronger as compared to the BRL; this is the reason as to why it became a United States dollar pretax loss.
b) Discuss whether Cooper Grant should be paid a bonus or not.
Cooper Grant ought to be paid a bonus mostly due to the simple fact that as the wholly owned Brazilian subsidiary of the United States based Acme Brush and as such they ought to be paid a compensation which consists of both a bonus as well as a salary. Another factor is that they also tend to incur a pretax loss as a result of translating the Brazilian Real each time they are compensated without the bonus (Saudagaran, 2009).
Business
1 answer:
jarptica [38.1K]4 years ago
4 0

Answer:

THINKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK

Explanation:

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E-mails that rouse strong emotions like anger should always be responded to immediately
docker41 [41]

Answer:

False

Explanation:

Strong emotions, especially violent or vengeful ones like anger, can cloud logical judgement and cause inappropriate outbursts. Writing an email while angry, especially in a professional environment, can have consequences and affect the receiver's impression of you. It is better to wait until the anger has subsided so you can explain why you may disagree politely, or choose the best course of action with a clear mind.

7 0
4 years ago
Income before any of the following items is $500,000. (All numbers are net of taxes.)
Alinara [238K]

Answer:

The correct option is d. $300,000

Explanation:

The computation of the net income is shown below:

= Income before adjustments + unrealized gain on trading securities - realized loss on discontinued operations

= $500,000 + $200,000 - $400,000

= $300,000

hence, the net income is $300,000

The correct option is d. $300,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0
3 years ago
Marketers of sunscreen tend to market the product more heavily in the midwest during summer months. this group of buyers is most
Finger [1]
<span> <span><span>

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The sunscreen marketers segmented group of buyers probably by​ occasion segmentation where they tend to market the product more heavily in the Midwest during summer. Occasion segmentation is dividing the market into groups according to different occasions example: as when the consumers actually buy, plan to buy or use the product and others are assumed to be pertinent for a specific event, time or day.





4 0
3 years ago
A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually
Shalnov [3]

Answer:

1) True

2) D. Total fixed costs

Explanation:

1)  The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0
3 years ago
Greta contributes property to form Unity Corp. and receives all 100 shares of Unity. A year later, Bjorn contributes property an
strojnjashka [21]

Answer:

Greta only

Explanation:

The shareholder that will receive the deferral treatment under Section 351 will be Greta

Therefore Immediately after Greta's contribution she will be the person to be in control of 80% or more which means she can controls up to 100% while Bjorn will only controls 16.67% which is (20÷120) after he or she made the transfer in which he may not include his with that of Greta's as a single transfer.

8 0
3 years ago
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