Potter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying book value. On that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snape Corporation. Potter purchased inventory from Snape for $150,000 on July 24, 20X6, and resold 90 percent of the inventory to unaffiliated companies on November 11, 20X6, for $160,000. Snape produced the inventory sold to Potter for $120,000. The companies had no other transactions during 20X6.Based on the information given above, what inventory balance will be reported by the consolidated entity on December 31, 20X6?
A. $25,000
B. $3,000
C. $15,000
D. $12,000
Answer: D
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When a company has earned a net income, the net income amount is entered on the work sheet on the
a. credit side of the Income Statement columns and the debit side of the Balance Sheet columns. b. debit side of both the Income Statement and the Balance Sheet columns. c. debit side of the Income Statement columns and the credit side of the Balance Sheet columns. d. credit side of both the Income Statement and the Balance Sheet columns.
Cat Nap Corp uses the indirect method to prepare the statement of cash flows
Refer to the following section of the comparative balance sheet: Cat Nap Corp Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Increase/(Decrease) Cash $45,000 $27,000 $18,000 Accounts Receivable 48,000 45,000 3,000 Merchandise Inventory 180,000 132,000 48,000 Total Assets $273,000 $204,000 $69,000 How will the change in Accounts Receivable be shown on the statement of cash flows? A) addition to net income under the operating activities section B) subtraction from net income under the operating activities section C) positive cash flow under the financing activities section D) negative cash flow under the investing activities section
A plaintiff alleging wage discrimination must file a complaint within a certain period of time of the decision that set the discriminatory pay.
Answer the following statement true (T) or false (F)
The Limited, which produces and retails clothing products in a coordinated channel, is an example of a(n)
A. administered vertical marketing system (VMS). B. conventional marketing channel. C. channel network. D. contractual marketing channel. E. corporate vertical marketing system.