The breakeven point is the point at which
a. fixed costs equal variable costs.
b. contribution margin equals fixed costs.
c. sales equal variable costs.
d. fixed costs equal sales.
B
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Which of the following does NOT describe a characteristic of effective management development?
A. The value of management development is a proven fact. B. Management development objectives must be compatible with organizational objectives. C. Management development is a long-range process. D. Organizations must use care in identifying their unique developmental needs. E. Management development is multifaceted and complex.
Online newspapers and magazines are the largest and fastest growing forms of online entertainment
Indicate whether the statement is true or false
What would be the amount appearing on the December 31, 2019 Consolidated Statement of Financial Position for deferred income taxes?
Ting Corp. owns 75% of Won Corp. and uses the cost method to account for its Investment, which it acquired on January 1, 2019. The Financial Statements of Ting Corp. and Won Corp. for the year ended December 31, 2019 are shown below:
Income Statements
Retained Earnings Statements
Balance Sheets:
Other Information:
> Won sold a tract of land to Ting at a profit of $20,000 during 2019. This land is still the property of Ting Corp.
> On January 1, 2019, Won sold equipment to Ting at a price that was $20,000 lower than its book value. The equipment had a remaining useful life of 5 years from that date.
> On January 1, 2019, Won's inventories contained items purchased from Ting for $120,000. This entire inventory was sold to outsiders during the year. Also during 2019, Won sold inventory to Ting for $30,000. Half this inventory is still in Ting's warehouse at year end. All sales are priced at a 20% mark-up above cost, regardless of whether the sales are internal or external.
> Won's Retained Earnings on the date of acquisition amounted to $700,000. There have been no changes to the company's common shares account.
> Won's book values did not differ materially from its fair values on the date of acquisition with the following exceptions:
• Inventory had a fair value that was $50,000 higher than its book value.
• A patent (which had not previously been accounted for) was identified on the acquisition date with an estimated fair value of $20,000. The patent had an estimated useful life of 5 years.
• There was a goodwill impairment loss of $10,000 during 2019.
• Both companies are subject to an effective tax rate of 40%.
• Both companies use straight line amortization exclusively.
• On January 1, 2019, Ting acquired half of Won's bonds for $60,000.
• The bonds carry a coupon rate of 10% and mature on January 1, 2039. The initial bond issue took place on January 1, 2019. The total discount on the issue date of the bonds was $20,000.
• Gains and losses from intercompany bond holdings are to be allocated to the two companies when consolidated statements are prepared.
A) $600. B) $900. C) $2,600. D) $1,200.
An agent of a bond issuer who handles the administrative aspects of a loan and ensures that the borrower complies with the terms of the bond indenture is called a:
A. registrar. B. trustee. C. transfer agent. D. none of the above.