Answer:
Option A is the correct answer,no adjustment is needed.
Explanation:
When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.
The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.
When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.
Answer:
the amount deferred by tower as intra-entity gross profit: 3,240
Explanation:
120,000 sales with a cost of 66,000
remains at year-end:
24,000 with a cost of: 66,000/120,000 x 24,000 = 13,200
gross profit: 24,000 - 13,200 = 10,800
For this rgoss profit we are going to deferre the 30%;
10,800 x 30% = 3,240
Answer:
whether or not there are close substitutes for the products of the two firms
Explanation:
The law watches closely for mergers that actively seek to inhibit or totally annihilate competition in the market which will be harmful for consumers. Mergers such as horizontal mergers, vertical mergers tend to bring about a monopoly whereby sellers aim to coordinate in a such a way that there is an agreement amongst them and profit is ensured while market becomes less efficient.
Answer:
See the attached pictures for detailed answer.
Explanation:
See the attached pictures for explanation.
First, you have to do $3000 times .07 (decimal form of 7%). That equals Assuming that the interest is 7% <em>each month,</em> your interest would be $210 a month. Then you would times that by 6 months. That would be $1260.
