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3 years ago

Explain the types of FDI

Business

1 answer:

elena55 [62]3 years ago

6 0

Explanation:

Typically, there are two main types of FDI: horizontal and vertical FDI. Horizontal: a business expands its domestic operations to a foreign country. In this case, the business conducts the same activities but in a foreign country. For example, McDonald's opening restaurants in Japan would be considered horizontal FDI.

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Hodge Co. exchanged Building 24 which has an appraised value of $4,971,000, a cost of $7,691,000, and accumulated depreciation o

VLD [36.1K]

Answer:

Hodge Co. Books

Debit : Building M $4,163,000

Debit : Accumulated Depreciation Building 24 $3,528,000

Credit : Cost of Building 24 $7,691,000

Fine Co. Books

Debit : Building 24 $4,283,000

Debit : Accumulated Depreciation Building 24 $4,796,000

Credit : Cost of Building 24 $9,079,000

Explanation:

Where an exchange transaction lacks commercial substance, the accounting standard IAS 16 requires that the Asset that is acquired is measured at the Carrying Amount of the Asset given up, and no gain or loss can be estimated reliably.

Carrying Amount is Cost of Asset minus Accumulated Depreciation

The Carrying Amounts for Building 24 and Building M can now be calculated as follows -

Carrying Amount :

Building 24 = $7,691,000 - $3,528,000 = $4,163,000

Building M = $9,079,000 - $4,796,000 = $4,283,000

Then, apply the Carrying Amounts as new cost of assets acquired for Both Companies as required by the standard.

5 0

3 years ago

Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by Dependable

Vikentia [17]

Answer:

We can assume that both Strike and Bailey are American companies and that they operate in that US under the UCC rules. Under UCC rules they are both considered merchants since they trade with the goods related to the contract. Strike's offer was very precise and Bailey's acceptance was made in a reasonable manner which can be considered a valid acceptance.

The only difference exists with the shipping company, which the UCC rules consider a conflicting term and Strike should have either objected or ratified it before sending the goods. Since Strike didn't object Bailey's terms, then by using a different truck company it is breaching the contract.

8 0

3 years ago

You call a coworker to see if they can come help you solve a problem

Sholpan [36]

Yes/true/correct/not false

8 0

4 years ago

The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with continuous compounding. What is the

dybincka [34]

Answer:

5.25%

Explanation:

Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus

(1+S3)^3=(1+S2)^2*(1+y2y1)^1

S3=4.75%

S2=4.5%

y2y1=unknown

(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)

1+y2y1=(1+4.75%)^3/(1+4.5%)^2

y2y1=((1+4.75%)^3/(1+4.5%)^2)-1

y2y1=5.25%

6 0

3 years ago

Dome Metals has credit sales of $522,000 yearly with credit terms of net 30 days, which is also the average collection period. A

monitta

Answer:

The net change in income if the new credit terms are adopted would be of $ 3,770

Explanation:

In order to calculate the net change in income if the new credit terms are adopted we would have to make first the following calculations:

New sales after new credit terms = ($522,000*110%)

New sales after new credit terms = $ 574,200

Increase in profit from newsales = (Profit % * New sales)

Increase in profit from newsales = (25%*($574,200-$522.000))

Increase in profit from newsales = $ 13,050

Average accounts receivable balance without discount = (Average collection period*Average daily sales)

Average accounts receivable balance without discount = (30*($522,000/360))

Average accounts receivable balance without discount = $ 43,500

Average accounts receivable balance with discount = (Due in days with discount*Average daily sales)

Average accounts receivable balance with discount = (10*($574,200/360)) Average accounts receivable balance with discount = $ 15,950/.

Reduction in accounts Receivable = ($43,500-$15,950)

Reduction in accounts Receivable = $ 27,550

Interest savings is = (Reduction in accounts receivable*firm's bank loan cost)

Interest savings is = ($27,550*8%)

Interest savings is = $ 2,204

Cost of discount = (Discount rate * Sales) = (2%*$574.200) = $ 11,484/.

Therefore, Net Gain/(Loss) is = (Increase in Profit+Interest savings-Cost of discount)

Net Gain/(Loss) is = ($13,050+$2,204-$11,484)

Net Gain/(Loss) is = $ 3,770

The net change in income if the new credit terms are adopted would be of $ 3,770

7 0

3 years ago