Answer:
the correct answer is
c. Whether the gift was reasonable in the circumstances.
good luck ❤
Answer:
Building with fair value of $150,000
Explanation :
In the consolidation work paper elimination, we eliminate the Equity or Net Identifiable assets that exist in Star Company at the Acquisition Date.
The Building with fair value of $150,000 was the only balance sheet item existing thus this is ultimately the Net Identifiable Assets that would be eliminated.
Answer:
b) ERP
Explanation:
Enterprise Resource Planning is a business management software that allows an organization to use a system of integrated applications to manage the business and automate many office functions related to technology. A typical example of an ERP is SAP ERP.
Answer:
A) Increase $137,500
Explanation:
Calculation for how will operating income be affected
CHANGE IN OPERATING INCOME
Sales Revenue (Additional) $850,000
(250 %* 340,000)
Less Variable expenses (Additional) ($587,500)
(250 % *$ 235,000)
Contribution Margin $ 262,500
($850,000-$587,500)
Less Fixed Expenses ($76,000)
($262,500-$76,000)
Operating Income $ 186,500
( $ 262,500-$76,000)
Less Previous Operating Income ($49,000)
Operating Income $137,500 Increase
($ 186,500-$49,000)
Therefore the operating income will increase by $137,500
Answer and Explanation:
As per the data given in the question,
a)
1. FIFO inventory > LIFO inventory
(Because in case of LIFO recent purchases are considered in production first or sold first so the remaining inventory are old inventory which is less costlier.)
2. FIFO cost of goods sold < LIFO cost of goods sold
(Because in case of LIFO recent purchases are considered in production first which are expensive so the cost of production is greater than FIFO.)
3. FIFO net income > LIFO net income
(Because cost of production is less under FIFO and the value of closing inventory is high, therefore the net income is also high.)
4. FIFO income taxes > LIFO income taxes
(Since, income is high in FIFO, therefore the tax under FIFO will be higher.)
b)
Management would like prefer to use LIFO over FIFO in periods of rising prices because Income shown in the company's Tax return will be higher if we use FIFO rather than using LIFO.
