The Jacob Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $500,000. At the ti
me of acquisition, Jacob paid $20,000 to have the assets appraised. The appraisal disclosed the following values: Land $100,000 Buildings 200,000 Equipment 300,000 What costs should be assigned to the buildings
The correct option is C,when they are viewed from the perspective of the parent firm.
Explanation:
In translating the foreign currency denominated subsidiary into parent's company presentation currency,the values of the subsidiary assets and liabilities change in order that the group financial performance(income statement) and position(balance sheet ) can be presented in one single uniform currency such that it is much easier for stakeholders to view the combined entity results in one single document.
This would accord the stakeholders to take important decisions on the entity as whole ,for instance a buy/divest decision.
Producer S brokered slightly more than $40,000 in insurance premium last year, the penalty amount of the surety bond S is required to maintain in favor of the people of Illinois is $2,500.
Explanation:
A producer that brokered more than $40,000 in insurance premium in a given year is required to pay a penalty amount of the surety bond of $2,500 in favor of the people of Illinois.
