A special-order decision analysis should not be used to make long-term pricing decisions.
Answer the following statement true (T) or false (F)
True
Prices must cover all costs if the company is to be profitable in the long run, and all costs are not considered in a special-order decision analysis.
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A) business market B) global market C) nonprofit market D) consumer market E) exclusive market
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Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2017, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2017 and 2018, respectively. Leo uses the equity method to account for its investment.On a consolidation worksheet, having used the equity method, what adjustment would be made for 2018 regarding the land transfer?
A. Debit investment in Stiller for $15,000. B. Credit retained earnings for $15,000. C. Debit retained earnings for $50,000. D. Debit retained earnings for $15,000. E. Credit retained earnings for $50,000.