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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.

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vredina [299]

The CEO of Twittter stepped down after having co founded the business and led it from 2015 to 2021.

The CEO of twittter is Jack Dorsey. He is an American. After he stepped down, the technological app was handed over to the Chief Technological officer as his replacement.

The reason why the co-founder decided to step down was due to his plans to focus on philanthropy and also to focus on crypto currency.

This came 15 years after the company was founded.

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5 0
3 years ago
The Landry Company has developed standards for labor. During June, 69 units were scheduled and 100 were produced. Data related t
kupik [55]

Answer:

$25 favorable

Explanation:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate           $ 3.40

actual rate   $ 3.30  (825 total cost / 250 labor hours)

actual hours 250

(3.4-3.3) \times 250 = DL \: rate \: variance

difference  $0.10

250 x 0.1 = rate variance

rate variance  $25.00

The diference between the actual cost per hour of the employee and the standard we considered is positive, it cost less to have the employee working on the product. the variance is favorable.

7 0
3 years ago
Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and
zmey [24]

Answer:

D. Reduce Output but continue production

Explanation:

Since marginal cost equals average total cost, it can be deduce that she's operating at her most productively efficient region. But she's force to sell at a price lower than her average total cost which could indicate a loss in profit. This means that she should stop production. But then again, her average variable cost is less than the market price, therefore it is adviceable for her to reduce output but continue to produce.

3 0
3 years ago
Read 2 more answers
In a competitive market, a computer store offers customers a warranty to help pay for any future damages. This is an example of
Taya2010 [7]

Answer:

The answer is reducing the risks for customers.

Explanation:

Businesses in a competitive market do many things to outshine their competitors. One of such things is offering a warranty to help pay for future damages. A warranty is simply an assurance that the business would be willing to help if a customer experiences challenges from use of the product sold by the business outfit. The business would either get the product fixed or give a new one to the customer with no additional cost.

Customers/consumers love warranty because it gives them full assurance and sense of security. As such, any business which offers warranties on their products would be seen as prepared to help reduce the risk for consumers of ther products.

5 0
3 years ago
The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants includes the elem
Black_prince [1.1K]

Answer: Competence, confidentiality, integrity, and credibility.

Explanation:

In the activities of management accountants professionals, the four standards of ethical conduct which the Institute of Management Accountants enacted are simply confidentiality, credibility, competence, and integrity.

This therefore shows that the right option is B.

5 0
3 years ago
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