Answer: The answer to your question is C.
Answer:
B) grafting
Explanation:
This is a very common expansion strategy mostly used by high tech firms that purchase startups basically for their patents (innovations) and their workers' talent.
But it can also be used by any company that decides to acquire a smaller supplier or vendor in order to lower costs or increase efficiency.
Answer:
True
Explanation:
Partnerships are not taxed as individual entities, they work as pass through entities where the partners must report any gains or losses on their personal income filings.
In this case, since Aaron owns 25% of Eagle Company, any loss or gain that Eagle company has will be passed to Aaron in the same percentage. Since Eagle had a $10,000 short term capital loss, $2,500 ($10,000 x 25%) of the loss will pass to Aaron.
Answer:
a. The property is sold on credit.
<em>The amount realized is the cash received at the date of sale and the cash that will be received in future when the credit is settled. </em>
b. A mortgage on the property is assumed by the buyer.
<em><u>The amount realized increases</u></em><em> because the seller will see their debt reduced and still receive cash from the buyer for the purchase of the property. </em>
c. A mortgage on the property is assumed by the seller.
<em><u>The amount realized decreases</u></em><em> because the realized amount will have to be net of the mortgage that the seller now has to pay. </em>
d. The buyer acquires the property subject to a mortgage of the seller.
<em><u>Amount realized increases </u></em><em>as the buyer will become the one making mortgage payments instead of the seller which effectively means that the seller gets the realized value net of debt. </em>
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 is received by the seller as part of the consideration.
<em><u>Realized value increases to $10,000</u></em><em> because that is the fair value of the stock when exchange for the property. </em>
Answer:
C) Vertical analysis.
Explanation:
Under the vertical analysis of financial statement, there is no a comparison with any past year performance as that is done in horizontal analysis.
Basically the first item that is sales revenue is marked as an 100% item, in this analysis, and all other cost items are shown as a percentage of this sales total value.
Everything shows the relation of sales value and that particular item. This helps in assessing which part of cost consumes the maximum revenue.
