Answer:
Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Explanation:
Book value per share of Red Inc = $1.20 per share
As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.
Net gain = Sale price - Book value
= $3.40 - $1.20 per share = $2.2 per share
Total gain for the year end on June 30 will be
= $2.2 per share X 180,000 shares = $396,000 shares
Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Answer:
d.total factory overhead cost variance.
Explanation:
In manufacturing accounting, at the beginning of the period, manufacturing overheads (i.e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i.e. the manufacturing overhead cost applied to work in process is <u>less </u>than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i.e. the manufacturing overhead cost applied to work in process is <u>more </u>than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.
A long distribution channel
Bonnie should incorporate for her company
Option B
<u>Explanation:
</u>
A distribution channel is an organization or intermediary network that moves a product or a service until it meets the last customer. Wholesalers, dealers, suppliers and even Web can be part of the distribution channels.
In long channels, product flows from producers to final customers are carried out via multiple levels of distribution in which each level is generally made up of more than one location.
In general distribution channels are divided into two systems which are: direct customer shipping and indirect shipping, which involves an intermediary level or two, including distributor/retailer warehouses in which goods from those intermediaries can be delivered to consumers differently.
