Vontkins Inc. owned all of Quasimota Co. The subsidiary had bonds payable outstanding on January 1, 2017, with a book value of $265,000. The parent acquired the bonds on that date for $288,000. Subsequently, Vontkins reported interest income of $25,000 in 2017 while Quasimota reported interest expense of $29,000. Consolidated financial statements were prepared for 2018. What adjustment would be required for the retained earnings balance as of January 1, 2018?
A. Reduction of $4,000.
B. Reduction of $19,000.
C. Reduction of $27,000.
D. Reduction of $20,000.
E. Reduction of $30,000.
Answer: B
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A) a contract between you and a local newspaper for publicity on the sale of your home. B) a contract between you and a real estate agent concerning the sale of your home. C) a contract between you and a potential buyer giving the signer first rights on the sale of your home. D) a contract between you and the buyer specifying that the title on the home is free of all defects.
Restating future cash flows in terms of present values and then determining the payback period using these present values is known as:
A. Net present value method. B. Accounting rate of return method. C. Break-even time (BET) D. Present value method. E. Internal rate of return method.
The land, cash, accounts receivable, inventory, equipment, building and other things of value that a company owns are considered its ________.
A. expenses B. assets C. revenues D. profits
The introduction of new information technology has:
A) a dampening effect on the discourse of business ethics. B) a ripple effect, raising new ethical, social, and political issues. C) a beneficial effect for society as a whole, while raising dilemmas for consumers. D) a waterfall effect in raising ever more complex ethical issues. E) no impact.