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nydimaria [60]
3 years ago
7

Candy Co. exchanged inventory with Dandy Co. in a transaction that lacks commercial substance. Both Candy’s and Dandy’s inventor

y had fair values that exceeded their costs by 30%. Since Dandy’s inventory was more valuable, however, Candy paid Dandy cash to compensate for the difference. Who, if anyone, will recognize a gain on the exchange?
Business
1 answer:
nata0808 [166]3 years ago
3 0

Answer:

Dandy Co.

Explanation:

Both companies traded inventories without making a profit out of it. Since Candy Co. paid some extra money to Dandy because Dandy's inventory was more valuable, only Dandy should be able to recognize a gain from this transaction, if some gain existed. Remember that the trade was supposedly done without making profit, then the money should have only compensated Dandy, not generated a gain.

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Transfer Pricing
dusya [7]

Answer:

Pembroke= $105,000

Multinomah= $120,000

Explanation:

Giving the following information:

The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.

The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.

Pembroke= 15,000*(82 - 75)= $105,000

Multinomah= 15,000*(90 - 82)= $120,000

3 0
2 years ago
How do price changes affect equilibrium?<br> (Gradpoint)
irina [24]

Answer:

By Serving As A Tool For A Distributing Goods And Services.

8 0
3 years ago
The _____ market is a market in which the demand for and supply of money determine an interest rate or opportunity cost of holdi
jek_recluse [69]

Answer:

Money

Explanation:

4 0
2 years ago
Comfort Corners Home Furnishings uses labor and machinery to transform wood, plastic, metal, and cloth into comfortable chairs,
Alinara [238K]

Answer:

Form Utility.

Explanation:

This is the process of designing a product to target a specific client's needs or wants. Customers' desires are incorporated into the features and benefits the products offer to customers. As in the above company. Various designs of furniture have been designed to appeal to customers needs and wants in home furnishing.furnishings.

3 0
3 years ago
Read 2 more answers
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweate
torisob [31]

Answer:

A

Explanation:

The country with a comparative advantage in the production of a good should export the good

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

England

Comparative advantage in the production of scones = 1/50 = 0.02

Comparative advantage in the production of sweater = 50/1 = 50

Scotland

Comparative advantage in the production of scones = 2/40 =  0.05

Comparative advantage in the production of sweater = 40/2 = 20

England has a comparative advantage in the production of scones and should export scones

Scotland  has a comparative advantage in the production of sweaters and should export sweaters

7 0
2 years ago
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