The establishment of a branch overseas will have tax consequences as ordinary business income under U.S. tax law
Indicate whether the statement is true or false
False
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U.S. disclosure rules require that a LIFO firm must disclose ending inventory either at its current cost or on a FIFO cost-flow basis
Indicate whether the statement is true or false
Pierce Company's break-even point is 12,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount?
A. $180,000 B. Fixed costs cannot be computed with the information provided. C. $250,000 D. $120,000
[The following information applies to the questions displayed below.]On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums.Assuming Wayne issued the bond for 102.5, what is the amount of interest expense that will be reported on the income statement for the year ending December 31, Year 1?
A. $15,000 B. $34,500 C. $36,000 D. $37,500
The following data pertain to the Ouster Division of Klandestine Company:Divisional contribution margin$700,000Profit margin controllable by the divisional manager320,000Profit margin traceable to the division294,400Average asset investment1,280,000The company uses responsibility accounting concepts when evaluating performance; Ouster's division manager is contemplating the following three investments. He can invest up to $400,000.?No. 1No. 2No. 3Cost$250,000$300,000$400,000Expected income50,00054,00096,000Required: A. Calculate the ROIs of the three investments.B. What is the division manager's current ROI, computed by using responsibility accounting concepts?C. Which of the three investments would be selected if the manager's focus is on Ouster's divisional performance, as judged by
ROI? Why?D. If Klandestine has an imputed interest charge of 22%, compute the residual income of investment no. 3. If Ouster's Division manager is evaluated by residual income, is this investment attractive from Ouster's perspective? From Klandestine's perspective? Why? What will be an ideal response?