In a manager-managed LLC (limited liability company), it is necessary that the manager is a member of that LLC
Indicate whether the statement is true or false
TRUE
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On January 1, 2018, the Regal Company purchased 30% of the outstanding voting stock of the Air Corporation for $300,000; the book value of Air's net assets at the date of purchase was $900,000. Regal was willing to pay more than the book value of the acquired shares because Air's depreciable assets with a ten-year remaining life were undervalued. Regal uses straight-line depreciation. During 2018, Air reported net income of $75,000 and paid dividends of $30,000.Regal has elected the fair value option to account for equity method investments. The fair value of the Air investment as of December 31,2018 was $295,000. The carrying value of the Air investment on December 31, 2018 was
A. $295,000 B. $313,500 C. $300,000 D. $310,500
Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateDirect materials 7.4grams$2.00per gramDirect labor 0.5hours$20.00per hourVariable overhead 0.5hours$7.00per hourThe company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The variable overhead efficiency variance for January is:
A. $1,540 U B. $1,540 F C. $1,496 F D. $1,496 U
Judicial review is the power of the federal courts to declare a statute or governmental action void
a. True b. False Indicate whether the statement is true or false
Disadvantages to transacting business as a sole proprietorship include
A. double taxation of the sole proprietor’s income. B. personal liability for the debts and obligations of the business. C. the limited duration of the sole proprietorship allowed by state law. D. costly filing fees for forming the sole proprietorship.