Answer: See explanation
Explanation:
West Division's residual income in August would be calculated as the difference between the Net Operating Income and the Minimum Required Return.
= $42,200 – ($240,000 x 19%)
= $42,200 - $45,600
= $(3,400) Negative
There are two general types of franchises: product-distribution and business format franchises.
Development may be inhibited in command economies because :
1. Government controls productivity
in command economies, the government basically regulate everything, including what to produce and its selling price
hope this helps
<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.
<u>Explanation:</u>
Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.
Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.
