Answer:
284%
Explanation:
You calculate it using the conversion method
Answer:
Conservative
Explanation:
Do you have anymore of these on this subject?
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
Answer: Bureaucratic organizations
Explanation: These organisations works with a high degree of formality in their operations. The structure of authority in such organisations are fixed and usually depicts pyramid structure.
The decisions under such organisations are made in an organized and predetermined basis. In such organisations, a separate pyramid structure of authority is followed by every different department.
Question Completion:
The impact on accounting equation:
Answer:
Assets = Liabilities + Equity
a. Cash +$6,200 = Liabilities + Retained Earnings + $6,200
b. Accounts Receivable +$4,700 = Liabilities + Retained Earnings + $4,700
c. Cash -$1,750 = Liabilities + Retained Earnings -$1,750
d. Cash + $2,350; Accounts Receivable -$2,350 = Liabilities + Equity
e. Cash - $840 = Liabilities + Retained Earnings -$840
Explanation:
The accounting equation states that Assets = Liabilities + Equity. This equation means that every business transaction has effect on either side or both sides of the equation. For every transaction, the Assets are increased or decreased and Liabilities + Equity are increased or decreased. And sometimes, only one side is affected by a transaction. This means that the affected side is increased and decreased by one transaction. Case "d" is typical example.
