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Pepsi [2]
3 years ago
13

Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits

Business
1 answer:
mrs_skeptik [129]3 years ago
8 0

Answer:

Consol. Income    Parent  Subsidiary  Elimination entries    Consolidated

statement                                                 Dr               Cr

Sales                   6000000 900000                                         6900000

COGS                <u>-4200000</u> <u>-540000</u>                                         <u>-4740000</u>

Gross profit         1800000   360000                                           2160000

Income (loss)       88200         0              88200                        <u>      0        </u>

from subsidiary

Operating          <u>-1140000</u>  <u> -234000</u>                                          <u>-1374000</u>

expense

Net income        748200     126000      88200                          786000  

Net income attributable to                       37800                           <u>37800</u>

non-controlling interests*

Net income attributable to Parent                                              <u>748200</u>

Workings:

Net income attributable to non-controlling interests = 126000*30% = 37800

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Identify the trade-restraining practice that this example demonstrates. Tubifor, Inc. purchases all available imported lumber so
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Answer:

"Pursuit of monopoly power" is the correct solution,

Explanation:

  • Through a party, the shareholders of such a monopoly have had the authority to adjust rates, eliminate rivals, thereby dominate the competition within the specific geographical region.
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Therefore the answer to the above was its right one.

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pychu [463]
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d. employment and production would fall.

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Economic agents have expectations about the parameters of an economy, such as price, inflation, unemployment rate, etc. If the price falls while economic agents expect the opposite, in the short run production and employment tend to increase. This is because investment decisions had already been made. However, in the medium and long term, economic agents realize that price expectations have not been confirmed and market parameters adjust. Thus, in the face of falling prices, there will be less demand. With lower demand, there will be a decrease in production and thus the employment rate decreases.

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What is meant by market in the lower-of-cost-or-market rule?
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Answer:

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