Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
Answer:
The break-even point measured in sales dollars is $8
The neoclassical monetarist O Keynesian attitude tends to view inflation nations as a fee that gives no offset integrated built-disintegrated integrated phrases of decreased unemployment.
Inflation is the fee of built-in boom integrated prices over a given time period. Inflation is normally a broad measure, together with the overall built integrated prices or the growth of built-inbuilt integrated fee of built-ing built-in a rustic.
There are three inflation reasons for built inflation: call for-pull built-inflation, cost-push integrated nation, and built-inflation.In built-inflationary built-ings, inconsistently building charges necessarily reduce the purchase built integrated electricity of some customers, and this erosion of real built-income is the built integrated largest fee of built-inflation. Inflation can also distort building strength over the years for recipients and payers of fixed built-in hobby charges.
Learn more about Inflation here:
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Answer:
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Answer:
a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.
b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.
Explanation:
a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.
There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.
b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.
