Tanner Company, a subsidiary acquired for cash, owned equipment with a fair value higher than the book value as of the date of combination. A consolidated balance sheet prepared immediately after the acquisition would include this difference in:
A. equipment.
B. retained earnings.
C. goodwill.
D. deferred charges.
Answer: A
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After all posting is complete, the Accounts Receivable balance in the general ledger should equal the sum of the customer balances in the accounts receivable ledger
Indicate whether the statement is true or false
Kotter Mining Company purchases a gravel pit for $2,500,000 . It estimates that 5,000,000 tons of gravel can be extracted over the pit's useful life. If 1,000,000 tons are extracted during the first year but only 750,000 tons are sold, what amount should be recorded for Gravel Inventory and Accumulated Depletion, respectively?
a. $125,000 and 375,000 b. $375,000 and $125,000 c. $375,000 and 375,000 d. $125,000 and $500,000
McDaniel Company sells two products—J and B
McDaniel predicts that it will sell 7,400 units of J and 6,500 units of B in the next period. The unit contribution margins are $2.90 and $6.30 for products J and B, respectively. What is the weighted-average unit contribution margin? (Round your answer to the nearest cent.) A) $4.60 B) $1.54 C) $2.95 D) $4.49
Grid Tools & Hardware Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Grid Tools wants a court to review it. First, however, the firm must? A) refuse to comply with the agency decision
B) petition other interested parties to oppose the decision. C) exhaust all possible administrative remedies. D) publish its opposition in the Federal Register.