Answer:
Revenue (Consulting revenue + Rental revenue)=33000+22000=55000.
Operating expense (salaries expense+rent expense)=20000+12000=32000
Selling and administrative expense = 8000
Explanation:
Armani Company
Year end Income statement 2019
Revenue = 55000
less: Operating expense =(<u>32000</u>)
Gross Profit 23000
less :Selling and administrative expense = (<u>8000</u>)
Net profit 15000
Notes: Question should be mentioned the company nature of business so that we can identify company real business.
Answer:
The following balances have been worked out from the information given in question;
Explanation:
No. of Common stocks issued $200,000/22 9,091
Paid in capital-Common Stocks 9,091*(22-1) $90,909
No. of Treasury Stock 3,000
Treasury stock 3,000*20 $60,000
EPS =$147,750/(9,091 -3,000) $24
Retained Earnings ($155,000+$147,750-$49,250) $253,500
The factor that the salary hike effect is :
A. Fixed cost
Technically, no matter how much output the workers produced, the wages will stay the same
hope this helps
Answer:
Find the answer below in explanation
Explanation:
Gillock Climbing Academy Pension Expense for the year 2019 will be recorded as
Service cost ............................................. 600,000.00
Interest (600000 × 10%)................................60,000.00
plan assets (40000 from 2018 + 32000 interest + 400000 made in current year)............... 832000
Expected return Interest on plan asset (832000*8%) ........................................ 66,560.00
Pension Expense for the year ended December 31, 2019 = 600000 - (66,560.00 - 60000)
= 600,000−6,560
= $593,440.00
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
