Answer:
(A) A wholly owned Subsidiary
Explanation:
A wholly owned subsidiary is a company that is completely owned by another company called the Parent/Holding Company. The parent company will hold all (100%) of the subsidiary's common stock.
A wholly owned subsidiary allows the parent company to diversify, manage, and possibly reduce its risk.
Some of the disadvantages of a wholly owned subsidiary include the possibility of multiple taxation, lack of business focus, and conflicting interest between subsidiaries and the parent company if not properly managed.
Answer:
a. $0.20
b. $322,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
The amount of depreciation to be recognized for each mile that a rental automobile is driven
= ($15,000 - $6,000)/45,000
= $9,000/45,000
= $0.20
Total millage expected of the 60 cars before disposal
= 60 * 45,000 miles
= 2,700,000 miles
The total amount of depreciation expense that Central Auto Rentals should recognize on this fleet of cars for the year
= 1,610,000/2,700,000 * ($9,000 * 60)
= $322,000
<span>b. False. Labor unions include workers of all skill levels and prefer opportunities for advancement.</span>
