1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vlada-n [284]
3 years ago
13

Penn Inc., a manufacturing company, owns 75 percent of the common stock of Sell Inc., an investment company. Sell owns 60 percen

t of the common stock of Vane Inc., an insurance company. In Penn's consolidated financial statements, should Sell and Vane be consolidated or reported as equity method investments (assuming there are no side agreements)?
A. Consolidation used for Sell and equity method used for Vane.
B. Consolidation used for both Sell and Vane.
C. Equity method used for Sell and consolidation used for Vane.
D. Equity method used for both Sell and Vane.
Business
1 answer:
ratelena [41]3 years ago
4 0

Answer:

Option B-Consolidation used for both Sell and Vane.

Explanation:

Both of the companies must be consolidated because the parent company controls both of the company and according to International Financial Reporting Standard, the companies that the parent company directly controls (75% ownership of Sell Inc. and 75% control) or indirectly controls (75%*60%= 45% ownership of Vane Inc. and 60% control of the company) must be consolidated. Here Penn Inc. controls both the subsidairies Sell Incorporation and Vane Incorporation, so they must be consolidated to group accounts.

You might be interested in
If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal
Lena [83]
<span>If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm should reduce its output. The reason for the reduction of output is the marginal cost it will have. The marginal cost exceeds the selling price of the product which is a bad sign for the company.</span>
8 0
3 years ago
Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of th
posledela

Answer:

Option C.

Explanation:

From the scenario presented above, Golden is not in any way liable for the inability to supply the total quantity of the 6-ounce yogurt containers, therefore, Golden can choose to reject the delivery of the 8-ounce containers.

Also, Golden can give Food Packaging a reasonable amount of time to enable them replace the containers, of Golden is not in a hurry to begin production and packaging.

5 0
3 years ago
Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 148,000 $ 140,200 W
ale4655 [162]

Answer:

$905,800

Explanation:

Calculation for Cost of goods sold

Total manufacturing costs $ 920,000

Add Begining Work in process inventory 97,000

Less Ending Work in process inventory (119,000)

Cost of goods manufactured $898,000

Add Begining Finished goods inventory $148,000

Less Ending Finished goods inventory$ (140,200)

Cost of goods sold $905,800

Therefore the Cost of goods sold is calculated to be: $905,800

3 0
3 years ago
1. What steps should one take to build confidence?
lisov135 [29]

Answer:

can you plz give me multiple thanks

plz ??

Worldview refers to the way one interprets the world around him.

❥❥❥❥╬٨ـﮩ❤️itzmrsshayar❤️ـﮩﮩـ╬❥❥❥❥

8 0
3 years ago
Lauren is an attorney. Like the conduct of all attorneys, Lauren’s conduct is governed by rules of professional conduct establis
GREYUIT [131]

Answer:

a. ​the American Bar Association.

Explanation:

-American Bar Association is an organization that is formed by law students and lawyers and it establishes codes of conduct for this profession. It created the Model Rules of Professional Conduct in 1983 and it is used in 49 states.

-American Institute of Certified Public Accountants is an organizaion formed by certified accountants in the United States and it determines ethical standards for the professionals.

-​The Securities and Exchange Commission is an agency of the United States government that develops and enforces laws for the securities industry.

-The International Accounting Standards Board is a body of the IFRS Foundation that establishes accounting standards.

According to this, the answer is that  Lauren’s conduct is governed by rules of professional conduct established by the state in which she is licensed, and the Model Rules of Professional Conduct of the American Bar Association.

8 0
3 years ago
Other questions:
  • Rodrigo wanted to buy his wife a pearl necklace for her birthday. Murphy's Jewelry had a necklace he liked for $139, but he boug
    14·1 answer
  • Cullumber Company had a beginning inventory on January 1 of 75 units of Product 4-18-15 at a cost of $18 per unit. During the ye
    8·1 answer
  • Grouper Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
    6·1 answer
  • Which is NOT an example of a cyclical company?
    7·2 answers
  • The company's revenue for the month totaled $950,000 from credit sales, and its cost of goods sold for the month is $540,000. Pr
    10·1 answer
  • Who ultimately pays for tariffs, consumers or producers?
    6·2 answers
  • Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60.
    11·1 answer
  • Why do we have to pay
    13·1 answer
  • If overhead is applied to individual jobs at a rate of 50% of direct labor costs incurred per job, and $50,000 in direct materia
    7·1 answer
  • Which of these options for saving money offers the lost liquidity?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!