Answer:
B) Sales and cost of goods sold should be reduced by the intercompany sales.
Explanation:
When a parent company consolidates its financial statements with its subsidiaries, it has to eliminate all the transactions involving intercompany sales.
In this case, Perez Inc. must adjust its consolidated financial statements by reducing the sales revenue and COGS of the transaction it made with Senior Inc. (its subsidiary).
8,400 is your answer all you have to do is add the 4 sales and subtract the discounts and the returns
Answer:
See explanation below as attached.
Explanation:
1. Predetermined overhead is 139% of direct labor hour
2. Under applied overhead is $6,200
Please find attached breakdown and solution to question 1, 2, 3, 4 and 5.
1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,
2) if the required return is less than the coupon rate the bond will sell at a premium.
Explanation:
1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.
2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.
