Postage, a holder of a $400,000 Stamp Inc. bond, collected the interest due on June 30, 20X8, and then sold the bond to DEF Inc. for $365,000. On that date the bond issuer, Stamp, a 90 percent owner of DEF, had a $450,000 carrying amount for this bond.Based on the information given above, what was the effect of DEF's purchase of Stamp's bond on the noncontrolling interest amount reported in Stamp's June 30, 20X8, consolidated balance sheet?
A. $35,000 increase
B. $8,500 decrease
C. $8,500 increase
D. No effect
Answer: D
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Referring to Figure 5.1, suppose the Mexican government imposes an import quota equal to 2 tons of steel. If the Mexican government auctions import licenses to the highest foreign bidder, the overall welfare loss of the quota to Mexico equals
a. $200. b. $400. c. $600. d. $800.
_____ present an ordered list, grouped by broad categories of revenues and expenses. They begin with revenues followed by a list of expenses
a. Income Statement b. Balance Sheets c. Statement of Retained Earnings d. Statement of Cash Flows e. None of the above
Which of the following roles spells out suggestions using examples?
A) initiator-contributor B) opinion seeker C) elaborator D) energizer
The returns on Asset A are strongly, negatively correlated with Asset B's returns; thus, holding the two assets together will
A) significantly reduce portfolio risk. B) significantly increase portfolio risk. C) have little or no effect on portfolio risk. D) significantly reduce portfolio return.