Kirk Corporation owns 25 percent of the voting stock of Allen Corporation and accounts for the investment using the equity method. Allen reports a net loss of $40,000. Kirk Corporation's entry to record its share of loss is:
A) Cash 10,000 Investment in Allen Corporation 10,000
B) Loss on Investments 40,000Investment in Allen Corporation 40,000
C) Loss, Allen Corporation Investment 10,000 Investment in Allen Corporation 10,000
D) Cash 10,000 Loss, Allen Corporation Investment 10,000
C
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Summarize the three types of organizations classified according to the three different purposes for which they are formed. Give an example of each and the purpose and customers they serve.
What will be an ideal response?
An example of an intangible asset is
a. A patent b. Land c. Investment in another company d. Raw material inventory
Kyle Inc manufactures automobiles. In recent past, the company started buying brake shoes from an external vendor. Which of the following decisions was made by the company in this example?
A) Special order decision B) Segment profitability decision C) Make-or-buy decision D) Sales mix decision
Lois was the agent of Lester, who owned a store in Walton, Iowa. While Lester was away on vacation, the Mississippi River reached record flood. As an agent, Lois only had permission to engage in sales at the store and purchase certain items. Faced with the prospect of losing all goods, Lois shipped Lester's inventory to a storage facility 200 miles away, out of the path of the flood waters. This
incurred costs, but saved the inventory. Lois acted in: a. violation of her duty of loyalty b. violation of her duty of obedience c. violation of her duty of accounting d. accordance with her duty of accounting e. none of the other choices