The involvement of labor unions represents a human resource factor that firms must consider when selecting an FDI location.
Economic theory holds that foreign direct investment (FDI) favors labor-intensive, low-tech output in emerging nations while favoring industrialized nations for high-tech production. FDI typically travels to nations where it is possible to use the internalization benefits of foreign investments to combine ownership advantages with location-specific advantages of the host nations (UNCTAD, 1998). FDI typically depends on a variety of investment-related criteria, such as the investment's motivation (market, resource, or efficiency reasons), the sector of the investment (manufacturing or services), and the size of the multinational firm or investor.
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Answer:
B. $214,000
Explanation:
The insurance premium paid for a 3 year period should not have been expensed out rightly but recognized as expense through periodic amortization spread over the entire period.
As such, the amount that should have been expensed in 2011 for insurance premium is
= 1/3 × $30,000
= $10,000
Recognizing an expense of $10,000 rather than $30,000 would have resulted in an increase in the tax expense by
= 70% × ($30,000 - $10,000)
= $14,000
As such, the retained earnings would have been
= $200,000 + $14,000
= $214,000
The overstatement of an expense would have resulted in an understatement of net income and thus and understatement of the retained earnings.
Answer:
Trial Balance of Snow Go Company
Particulars Debit$ Credit$
Equipment 88,000
Common Stock 20,000
Dividends 8,000
Salaries and Wages Payables 2,000
Accounts Payables 22,000
Notes Payables(Short Term) 19,000
Salaries and Wages Expenses 42,000
Utilities Expense 3,000
Accounts Receivables 4,000
Prepaid Insurance 6,000
Service Revenue 95,000
Cash <u>7,000</u> <u> </u>
TOTAL $<u>158,000</u> $<u>158,000</u>
I think the explanation of this manner is that the concession items have a high-profit margin. It has more sales than the theater tickets. So to avoid the possible losses of income, the theater decides to make the prices of each item of concession stand must be the same to a different group of people.
