When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet? A. Parent company net income equals controlling interest in consolidated net income.
B. Parent company retained earnings equals consolidated retained earnings.
C. Parent company total assets equals consolidated total assets.
D. Parent company dividends equals consolidated dividends.
E. Goodwill will not be recorded on the parent's books.
Answers
Answer: The correct answer is "C. Parent company total assets equals consolidated total assets".
Explanation: The statement "C. Parent company total assets equals consolidated total assets" is false before making adjustments on the consolidated worksheet when a parent uses the equity method because the parent company total assets are not equal to consolidated total assets.
Related Questions
Consider two products, X and Y, that have identical cost, retail price, and demand parameters and the same short selling season (the summer months from May through August). The newsvendor model is used to manage inventory for both products. Product X is to be discontinued at the end of the season this year and the leftover inventory will be salvaged at 75 percent of the cost. Product Y will be reoffered next summer, so any leftovers this year can be carried over to the next year while incurring a holding cost on each unit left over equal to 20 percent of the product's cost. The quantity of each product is selected to maximize expected profit. How do those quantities compare?
A Canadian apple farmer buys fertilizer from a U.S. based firm located near the Canadian border. The apple farmer receives a guarantee of payment from a Canadian bank and sells the guarantee in the secondary market. The risk of the banker’s acceptance depends most likely on the:a. Apple farmer. b. U.S. fertilizer firm. c. Canadian bank. d. Apple market
In April 2013, Sparkle Enterprises purchased the Crimson Mine at a cost of $18,000,000. The mine is estimated to contain 500,000 tons of ore with a residual value of $2,000,000 after mining operations are completed. During 2013, 120,000 tons of ore were removed from the mine and sold. In this situation: a. The book value of the mine is $16,000,000 at the end of 2013. b. The amount of depletion deducted from revenue during 2013 is $3,840,000. c. The amount of depletion deducted from revenue during 2013 is $2,000,000. d. The mine is classified as an intangible asset with in indefinite life and is not amortized.
Glenville Company has the following information for April: Cost of direct materials used in production $280,000 Direct labor 324,000 Factory overhead 188,900 Work in process inventory, April 1 72,300 Work in process inventory, April 30 76,800 Finished goods inventory, April 1 39,600 Finished goods inventory, April 30 41,200 a. For April, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured.
Answers
Answer:
The correct answer is $588,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the cash receipts for Quarter 4 by using following formula:
Cash receipts for Quarter 4 = Cash Sales + Cash collected from credit sales in Qtr 4 + Accounts receivable of Qtr 3
Where, Cash sales = $580,000 × 50% = $290,000
Cash collected from credit sales in Qtr 4 = ($580,000 × 50%) ×60% = $174,000
Accounts receivable of Qtr 3 = ($620,000 × 50%) × 40% = $124,000
By putting the value, we get
Cash receipts = $290,000+$174,000+$124,000
= $588,000
Answers
Answer:
Fixed Cost = $24,000 Variable cost = $5
Explanation:
You have to use the High-Low method
From the table you got, you pick the higher and the lowest unit sold
and calculate the diference between them:
Now 14,400 Units generates a cost of 72,000 Dividing we get the variable component
Then we calculate for the fixed cost:
Fixed Cost = 24,000
Sales $1,250,000 $800,000 $950,000
Operating assets 650,000 300,000 400,000
Net operating income 146,250 52,800 79,600
1) Compute the return on investment for each division.
2) Compute the residual income for each division.
Answers
Answer:
Trucking Seafood Construction
division division division
Sales $1,250,000 $800,000 $950,000
Net operating income $146,250 $52,800 $79,600
Income taxes ($43,875) ($15,840) ($23,880)
Net income $102,375 $36,960 $55,720
Operating assets $650,000 $300,000 $400,000
rrr x operating assets $65,000 $30,000 $40,000
1) ROI 15.75% 12.32% 13.93%
(net income/investment)
2) Residual income $81,250 $22,800 $39,600
operating income - (rrr x operating assets)
Answers
Answer:
I have put the filing status in table. So please refer attachment 1 for the table.
Explanation:
Please refer to attachment 1 for explanation.
Celia was married 24 years ago, i.e. 1980 and in 2014 her husband died, now her filing status is Widower since she didn’t marry till 2016 but she has son so he would be dependent member because Celia pays more than 50% of his expenses. Hence, the filing status for Celia would remain same till she pays for her son.
Answers
Answer:
The equivalent units of production for conversion costs for the month of January is 78,760 units
Explanation:
The computation of the equivalent units of production for the conversion cost is shown below:
We know that,
Ending work in progress inventory = Units started - units completed
20,900 units = 91,300 units - units completed
So, units completed = 91,300 units -20,900 units = 70,400 units
It is given in the question that 40% ending work in progress inventory units is completed,
So completed units = 20,900 × 40% = 8,360 units
And,the equivalent units of production equals to
= Units completed + completed units in ending inventory
= 70,400 units + 8,360 units
= 78,760 units
Answers
Answer:
a. It focuses on generating new revenue by offering new products and services.
Explanation:
An information system or technology can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products. Thus, an information system or technology interacts with its environment by receiving data in its raw forms and information in a usable format.
Information technology is an integral part of human life because individuals, organizations, and institutions rely on information technologies in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, process financial accounts, manage their workforce, and as a marketing channels to reach their customers or potential customers.
Additionally, an information system comprises of five (5) main components;
1. Hardware.
2. Software.
3. Database.
4. Human resources.
5. Telecommunications.
Hence, in the context of using information technologies for a competitive advantage over rivals in the industry, the statement which is true of a top-line strategy is that, it focuses on generating new revenue by offering new products and services. The top-line strategy ensures that the company continues to generate gross revenue or sales.