Question 2

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h

Nat2105 [25]

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.

4 0

2 years ago

At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area w

steposvetlana [31]

Answer:

would be considered collusion.

Explanation:

Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.

8 0

3 years ago

An adult with a developmental disability works at a local product fulfillment and distribution center. She takes the bus to get

harkovskaia [24]

Answer: Tracking and identification.

Explanation: In other ease the woes and stress of such individual, integrating a tracking and identification capability on her app will be of great help. This will ensure that she could be easily and effectively located by leveraging the ability of the geographic positioning system in other to correctly get and know are current location. With these she could be picked easily when issues of drops off at the wrong location. Trackers allows one to determine the current location of items or individuals in which the tracking devices are placed on. As it also gives signals when one gets to the current position of the item or individual for proper identification. With these locating her will become very easy and hassle free during instances of wrong drop off.

7 0

3 years ago

Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r

Molodets [167]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $27,300

(1,300 × $21)

To Common Stock $1,300

To Paid in capital in excess of par-Common Stock $26,000

(Being issue of common stock is recorded)

2.Treasury stock Dr, $5,000

(250 × $20)

To Cash $5,000

(Being repurchase of treasury stock is recorded)

3. Cash Dr, $6,750

(250 × $27)

To Treasury stock $5,000

(250 × $20)

To Paid in capital-Treasury stock $1,750

(Being reissue of treasury stock is recorded)

3 0

2 years ago

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as

Serga [27]

Answer:

d. Cash 27,000

Floyd, Capital 5,250

Merriam, Capital 1,750

Ramelow, Capital 20,000

Explanation:

First of all we need to calculate the total capital after admission

Total Capital after admission = $50,000 + $23,000 + $27,000 = $100,000

Share of Ramelow = Total Capital x Partnership share = $100,000 x 1/5 = $20,000

Actual Payment made by Ramelow = $27,000

Amount of goodwill paid by Ramelow = $27,000 - $20,000 = $7,000

This goodwill will be distributed between Floyd and Merriam as per their partnership ratio

Share of Goodwill ro Flyod = $7,000 x 3/4 = $5,250

Share of Goodwill ro Merriam = $7,000 x 1/4 = $1,750

3 0

2 years ago