Answer:
Report a prior period adjustment decreasing retained earnings by $1,040,000
Explanation:
Report a prior period adjustment decreasing retained earnings by $1,040,000
Dr Retained earnings $1,040,000
Dr Deferred tax liability $560,000
(35%×$1,600,000)
Cr Estimated warranty liability $1,600,000
Therefore As a result of this change, the firm would Report a prior period adjustment decreasing retained earnings by $1,040,000
Answer: C
Explanation:
Since he turned it down, he must have less money to use with it. There would be no other reason for him to turn it down. Therefore, the project value is negative.
Answer:
inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.
Explanation:
A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.
The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.
Answer:
The strategy that would be least effective in reducing the company's criminal liability is:
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Explanation:
While the other three options will effectively reduce the company's criminal liability exposure, option D is the least that is likely to have a positive or effective effect. This implies that option D is most likely to aggravate the criminal liability of the company as it will be regarded as bribery to cover up a crime.
