Answer:
B. A decline in the value of the inventory.
Explanation:
Cost basis accounting: It is a method of calculating the value of inventory on actual cost for tax purposes as the purchase price is adjusted for dividends and return of capital distribution. It uses lower of cost either original cost or current market price. The market price should not be less or more than the net realizable value. Net realizable value is defined as the selling price minus cost of completion. Therefore, the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by a decline in the value of the inventory.
Answer:
d) The views of candidates currently running for office do not necessarily represent the views of all politicians.
Explanation:
The reporter simply transferred the conclusion onto the whole politician cohort. Since only the candidates who are running for high-stake political positions were included in the survey, that does not necessarily mean that all the politicians that exist think the new limit is bad.
To add up, the percentage of politicians that are also the candidates for high positions is significantly smaller than the number of all politicians.
In a common size income statement, the most commonly used base item is total sales or total revenue. All other line items are represented as a percentage of this amount. This method allows for easier comparison of financial statements over different periods or from different companies.
In a common size income statement, the most commonly used base item is total sales or total revenue.
This means, every line item on the income statement such as cost of goods sold, gross profit, operating expenses, and net income, among others, are converted into a percentage of total sales.
A common size analysis facilitates the comparison of financial statements over different periods, or among different companies, by expressing each line item as a percentage of the base item.
Take an example, if the total sales of a company in a particular year is $100,000 and the cost of goods sold represents $60,000 then in the common size income statement, the cost of goods sold will be represented as 60% (i.e., $60,000/$100,000 * 100).
This method makes it easier to compare relative proportions of account balances, irrespective of the size of the company or the period.
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The most commonly used base item for a common size income statement is sales revenue. This allows for easy comparison of financial performance between different companies or different reporting periods.
The most commonly used base item for a common size income statement is sales revenue. When performing a common size analysis, the values on the income statement are typically converted into percentages of sales revenue. This allows for easy comparison of financial performance between different companies or different reporting periods, regardless of the size of the company or the amount of sales. For instance, the cost of goods sold and operating expenses would be represented as a percentage of sales revenue. This way, you can compare the relative size of cost items to the sales they support, across different firms or times.
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Answer:
15 percent
Explanation:
The maximum total interest in any company is 100%. Since 85% of the common stock of Star Company was acquired by Peta Company, Peta Company is automatically the parent company to Star Company no matter the amount of cash its paid for the acquisition while the remaining 15% will automatically be classified as non-controlling interest.
Therefore, noncontrolling interest can be calculated as follows:
Noncontrolling interest = Total interest - Peta company's interest
= 100% - 85% = 15%
Therefore, 15 percent is the portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination that is assigned to the noncontrolling interest. The amount paid for the percentage interest acquisition does matter when profit is been shared between the parent company and the non-controlling interest.
Note:
A parent company is a company that has more than 50 percent of outstanding shares and therefore it is in charge of all decision making of the company. The company it acquired its more than 50 percent outstanding shares now becomes its subsidiary.
Non-controlling interest refers to the ownership of less than 50 percent of outstanding shares in a company and therefore not in charge of all decision making of the company. It is also referred as the minority interest.
Answer:
The solution to the given problem is done below.
Explanation:
(a) Depreciation
for Financial Depreciation for Temporary
Year Reporting Purposes Tax Purposes Difference
2017 $160,000 $264,000 (104,000)
2018 $160,000 $360,000 (200,000)
2019 $160,000 $120,000 40,000
2020 $160,000 $56,000 104,000
2021 $160,000 0 $160,000
$800,000 $800,000 0
(b) 2018 2019 2020 2021 Total
Future taxable
amounts:
Depreciation $(200,000) $40,000 104,000 $160,000 $104,000
Deferred tax liability: $104,000 × 40% = $41,600 at the end of 2017.
B) Google and Apple are showing corporate social responsibility because they demonstrate concern for their investors,which is exactly where their focus should be.
C) Blackberry is acting philanthropically toward government.
D) Google and Apple are showing their distrust for big government,and their avoidance of contributing toward philanthropic causes.
Answer:
A) Laws represent the minimum guidelines that companies must follow,whereas a firm's ethical stance may venture beyond the minimum level of compliance.
Explanation:
In the given scenario there are laws that allows community and state police to set up sobriety check points that discourages drunk drivers and saves lives.
The inclusion or removal of applications that helps drunk drivers avoid these checkpoints is not covered by the law. So if a company decides to include such applications it is at their discretion.
Blackberry have chosen to remove applications that helps drunk drivers avoid checkpoints. This is an example of when a company has ventured beyond the minimum level of compliance because of their ethical stance.
Google and Apple however have only ventured beyond the minimum compliance level because they have refused to honour requests by legislators to remove apps that permit smartphone users to navigate around the checkpoints.
The statement that applies to this situation is : "Laws represent the minimum guidelines that companies must follow, whereas a firm's ethical stance may venture beyond the minimum level of compliance."
The correct answer is option A
In the scenario described, the companies are facing a situation where lawmakers have requested the removal of apps that allow users to navigate around sobriety checkpoints.
Option A is the most suitable because it reflects the fundamental distinction between legal compliance (following the law) and ethical behavior (going beyond what the law mandates). Let's break it down further:
Laws represent the minimum guidelines that companies must follow: This statement acknowledges that companies are legally obligated to comply with the laws and regulations of the jurisdictions in which they operate. In this case, lawmakers have made a request, but it's not legally mandated to remove these apps.
A firm's ethical stance may venture beyond the minimum level of compliance: This part of the statement highlights that ethical behavior goes beyond what is legally required.
Therefore, option A is correct.
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Answer:
The net realizable value of Miller's receivables at the end of Year 2 was: $42,010
Explanation:
Open a Trade Receivable Account as follows :
Debits :
Revenue $133,000
Totals $133,000
Credits:
Cash $87,000
Balance $46,000
Totals $133,000
Note that Allowance for Doubtful debts is estimated at 3% of the Company`s Sales on Account
Allowance for Doubtful debts = $133,000 × 3%
= $ 3, 990
Net realizable value of Miller's receivables
Trade Receivable Balance $46,000
Less Allowance for Doubtful Debts $3,990
Trade Receivables $42,010
The net realizable value of Miller Company's receivables at the end of Year 2 is calculated by estimating bad debt and subtracting it from the ending accounts receivable. The estimated bad debt is 3% of sales, leading to a net realizable value of $42,010.
The question revolves around calculating the net realizable value of accounts receivable for the Miller Company at the end of Year 2. First, we need to calculate the estimated bad debt. The company estimates that 3% of its sales on account will be uncollectible, which equates to $133,000 * 0.03 = $3,990. After subtracting the cash collected from receivables, $133,000 - $87,000, we get ending accounts receivable of $46,000. Finally, we deduct the estimated bad debts from ending accounts receivable to obtain the net realizable value, which is $46,000 - $3,990 = $42,010.
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