Which of the following formulas can often reconcile the difference between absorption- and variable-costing income?

A. (Absorption-costing income ? variable-costing income) × fixed-overhead rate per unit.
B. Change in inventory units ÷ predetermined fixed-overhead rate per unit.
C. Change in inventory units ÷ predetermined variable-overhead rate per unit.
D. Change in inventory units × predetermined fixed-overhead rate per unit.
E. Change in inventory units × predetermined variable-overhead rate per unit.


Answer: D

Business

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Answer the following statements true (T) or false (F)

1.Although an import tariff provides the domestic government additional tax revenue, it benefits domestic consumers at the expense of domestic producers. 2.An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect. 3.The deadweight losses of an import tariff consist of the protection effect plus the consumption effect. 4.The redistribution effect is the transfer of producer surplus to domestic consumers of the import-competing product. 5.If a country accounts for a negligible portion of international trade in a particular product, its levying an import tariff on that product necessarily increases its overall welfare.

Business

Which of the following is true of a juridical person?

A. It is a human being. B. It makes decisions through agents. C. It is an illegal entity. D. It can neither sue nor be sued.

Business

On January 1, a company issued and sold a $420,000, 3%, 10-year bond payable, and received proceeds of $415,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:

A. $415,500. B. $415,250. C. $414,750. D. $420,000. E. $419,750.

Business

Parent Corporation purchased land from S1 Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies:  Subsidiary Level of Ownership2008 Net Income S3  80 percent  $100,000   S2  70 percent   70,000   S1  90 percent   95,000   Parent reported income from its separate operations of $200,000 for 20X8.Based on the preceding information, at what amount should the land be reported in the consolidated balance sheet as of December 31, 20X8?

A. $220,000 B. $160,000 C. $145,000 D. $197,000

Business