On August 1 . 2013 . Abruzzo Corp acquired 10,000 of the outstanding shares of Tuscany Co On January 2, 2014, Abruzzo acquired an additional 20,000 shares of Tuscany Co, which brought the total ownership to 30,000 shares. Using the normal guidelines for percentages of ownership and assuming that Tuscany Co had 100,000 shares outstanding during 2013 and 2014, Abruzzo Corp should account for the
investment in Tuscany Co by using the
a. cost method in 2013 and the equity method in 2014.
b. cost method in 2013 . retroactively adjusting the investment account to the equity method at the beginning of 2014, and using the equity method in 2014.
c. equity method for 2013 and 2014.
d. cost method in 2013 and 2014 for the 10,000 shares acquired in 2013 . and using the equity method in 2014 for the 20,000 shares acquired in 2014.
B
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In considering a large-scale layoff, a manager performs a cost-benefit analysis and determines that profits will be greatest if she proceeds. She is using the ______ approach to guide her decision regarding an ethical dilemma.
a. individual b. responsibility c. utilitarian d. moral-rights e. justice
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold$530,000? Merchandise inventory, January 1 88,000? Merchandise inventory, December 31 103,000? Accounts payable, January 1 74,000? Accounts payable, December 31 63,000?
A. $618,000. B. $504,000. C. $545,000. D. $556,000. E. $541,000.
______ depend more on explicit messages conveyed through the spoken or written word.
A. High-context cultures B. Euphemism cultures C. Low-context cultures D. Social context cultures
On December 31 . 2014, Ohio Corporation appropriately changed its inventory valuation method to FIFO cost from LIFO cost for both financial statement and income tax purposes. The change will result in a $140,000 increase in the beginning inventory at January 1 . 2014 . Assume a 30 percent income tax rate. The cumulative effect of this accounting change Ohio for the year ended December 31 . 2014,
is a. $0. b. $42,000. c. $98,000. d. $140,000.