Goodwill recovery differs between GAAP and tax rules in that GAAP requires corporations to (amortize/impair) goodwill whereas tax law requires corporations to (amortize/impair) goodwill. True or false?

Answers

Answer 1

Answer:

Impair and Amortize respectively.

Explanation:

Goodwill is the excess of purchase price over the fair market value of a company’s net assets.

A challenge of goodwill accounting is that it's treated differently under tax accounting and another under GAAP accounting.

Any goodwill created in an acquisition structured as an asset sales is tax deductible and amortizable over 15 years along with other intangible assets that fall under IRC section 197.

Under GAAP accounting, goodwill is not amortized but rather tested annually for impairment regardless of whether the acquisition is an asset/338 or stock sale.


Related Questions

In year 2, Reynolds changes its inventory method from FIFO to the weighted-average method. If the weighted-average method would have been used in year 1, cost of goods sold would be $10,000 higher. Reynolds has an effective tax rate of 40%. What is the after-tax effect on retained earnings for year 1 for the change in accounting method

Answers

Answer:

Retained earnings for year 1 would be lower by $6000

Explanation:

A change in inventory valuation method resulted in higher cost of goods sold for the previous year.

This means had the new method of inventory valuation i.e weighted average been followed, the gross profit would have been lower by $10,000.

Had gross profits been lower by $10,000 , it would've led to net income being lower by $10,000. After deduction of 40% tax rate on such income, the after tax income would've been $6000 lower.

This further means the balance of retained earnings would've been reduced by $6000.

Which of the following DOES NOT increase profit by improving​ quality? A. increased productivity B. higher warranty costs C. flexible pricing D. improved reputation

Answers

Answer:

B. higher warranty costs

Explanation:

The increase in the profit by improving the quality does not increase or gets impacted by the higher warranty costs and thus is a not the reasons for the increase of the productivity and the higher and content of the quality and thereby an increase of the costs adds to the warranty and does not guarantee the improved quality.

Higher warranty costs do not increase profits by improving quality; they may actually signify underlying quality issues and lead to increased costs. In a perfectly competitive market, firms cannot increase prices for higher profit without losing customers, as prices are determined by the market.

Among the choices provided, ​higher warranty costs do not increase profit by improving quality. On the contrary, higher warranty costs can be a burden for a company. By improving quality, companies generally aim to enhance productivity, establish flexible pricing strategies, and foster an improved reputation, which are all conducive to boosting profitability. However, high warranty costs indicate that there might be quality issues leading to more returns and repairs — ultimately increasing expenses and reducing profit margins.

True or False: Keeping his maximum willingness to pay for an apartment in mind, Jake will not buy the apartment because it would be worth less to him than its market price of $300,000.

Answers

Answer:

TRUE

Explanation:

True it is that: Keeping his maximum willingness to pay for an apartment in mind, Jake will not buy the apartment because it would be worth less to him than its market price of $300,000.

Generally consumers respond to value as a matter of fact consumers can pay more than the list price if they think it will give them higher value than the market price.

Consumers don't purchase products primarily for their functions, hence Jake will not pay for the house because of his maximum willingness to pay.

A customer buys a product for the perceived benefit he will gain from it. This perceived benefit, in addition to his opinion of the product, are what create customer perceived value.

Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $2.75 each, he sells 250. At a price of $2.25 each, he sells 300. A. What is the elasticity of demand?
B. Is demand elastic or inelastic over this price range?
C. If demand had the same elasticity for a price decline from $2.25 to $1.75 as it does for the decline from $2.75 to $2.25, would cutting the price from $2.25 to $1.75 increase or decrease Danny's total revenue?

Answers

Answer:

A) PED = 1.1

B) demand is elastic

C) Danny's total revenue would decrease

Explanation:

we can calculate the price elasticity of demand using the formula:

PED = % change in quantity demanded / % change in price = [(300 - 250) / 250] / [(2.25 - 2.75) / 2.75] = (50 / 250) / (-0.5 / 2.75) = 0.2 / 0.18 = 1.1

since PED = 1.1, the demand is elastic

if the PED is the same when the price decreases from $2.25 to $1.75, total revenue will    :

when price = $2.25, total revenue = $2.25 x 300 = $675

when price = $1.75, total revenue = $1.75 x 373 = $652.75

*a 22.22% decrease in the price will cause a 24.44% increase (= 22.22% x 1.1) in the quantity demanded = 300 units + (300 x 24.44%) = 373.3 ≈ 373 units

High self-monitoring consumers probably prefer ads that contain _____. text focusing on the benefits of the product or service visually provocative themes scenes of social acceptance appeals to nationalism

Answers

Answer:

visually provocative themes.

Explanation:

High self monitors are like chameleons that follow social cues on how to behave. They change the way they present themselves in different social setting to fit the occasion. For example if a highly self monitor person is at a party and is having a bad day, they will modify how they present themselves by expressing a happy front.

Because of this adaptability to social environments they go into careers like public relations, sales, diplomacy, and law.

They may buy a product based on how it looks even though it's performance is not that good. For example buying a fancy phone.

They are more attracted by the image of the product.

Final answer:

High self-monitoring consumers probably prefer ads that contain scenes of social acceptance .

Explanation:

High self-monitoring consumers probably prefer ads that contain scenes of social acceptance. These individuals are more attuned to their social environments and are more likely to be influenced by advertisements that depict or suggest social approval or inclusion.

Ads that feature visually provocative themes or appeals to nationalism may attract attention, but scenes promising or illustrating social acceptance directly appeal to high self-monitoring consumers’ sensitivity to how they are perceived by others. This aligns with advertising strategies that focus on creating positive associations with products, such as using appealing music, attractive models, and scenarios depicting happy people using a product to evoke a sense of belonging and acceptance.

The debits to work in process—roasting department for morning brew coffee company for august 2016, together with information concerning production, are as follows: work in process, august 1, 700 pounds, 20% completed $ 3,479* *direct materials (700 x $4.70) $3,290 conversion (700 x 20% x $1.35) 189 $3,479 coffee beans added during august, 14,300 pounds 65,780 conversion costs during august 21,942 work in process, august 31, 400 pounds, 42% completed ? goods finished during august, 14,600 pounds ?

Answers

Answer:

The cost of production report for Morning Brew Coffee Company for August 2016 is attached.

Explanation:

Kevin is a top-level manager at an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time?

Answers

Answer:

Kevin spends most of his time on planning

Explanation:

Planning is considering the activities that an organization needs to undertake to achieve its objectives as well as efficient and effective utilization of resources in carrying out those activities.

Efficiency and effectiveness are very important because the organization is in business in order to maximize the wealth of its founders, which can only be achieved by making sure that organization avoids wastefulness  while also deploying the least possible resources in a given circumstance

The governor wants to levy a $1 excise tax on a product but wants to minimize the deadweight loss. The deadweight loss will be LEAST when the demand curve is _____ and the supply curve is _____.

Answers

Answer:

D) inelastic, inelastic

Explanation:

A price ceiling set below the equilibrium price will always cause an increase in the quantity demanded and a decrease in the quantity supplied, resulting in both a shortage and a deadweight loss.

When the demand and the supply curves are inelastic, their slope is greater, which reduces the potential loss. The deadweight loss is the area in between the supply and demand curve and left of the equilibrium price.

The editorial board of Gamers' Page, a magazine that primarily caters to people who are enthusiastic about sports and gaming, targets people who enjoy games. This type of market segmentation used by the editorial board of Gamers' Page is an example of ________.A) ​usage-rate segmentation
B) geographic segmentation
C) psychographic segmentation
D)​ benefit segmentation

Answers

Usage-rate segmentation

Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 2.60 trillions of rupees. Individuals consume: 10.60 trillions of rupees. Individuals save: 5.04 trillions of rupees. Businesses invest: 1.50 trillions of rupees. Foreigners spend: 0.70 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.69 trillions of rupees. Pakistan exports: 1.40 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.

Answers

Answer:

GDP of Pakistan is 13.41 trillion of Rupees

Explanation:

GDP = C + I + G + Net Exports

GDP = 10.6 + 1.5 + 2.6 + (1.4 Exports - 2.69 Imports) =

Where C stands for consumption, I for investment by the businesses, G is the government spending or purchases, Net Exports is the difference between exports X and imports M.

Now:

G-Government spending or Govt. Purchases are Rs 2.60 trillions

I-Investment by the businesses are Rs 1.50 trillions

C-Consumption was Rs 10.6 trillions

Net Exports-(Exports X - Imports M) was the difference of exports Rs 1.4 trillions and imports of Rs 2.69 trillions

By putting the values we have:

GDP= 10.6 + 1.5 + 2.6 + (1.4 Exports - 2.69 Imports)= 13.41 trillion of Rupees

A schedule listing account balances for the current and previous years, and columns for adjusting and reclassifying entries proposed by the auditors to arrive at the final mount that will appear in the financial statement, is referred to as a: _______.
A) Working trial balance.
B) Lead schedule.
C) Summarizing schedule.
D) Supporting schedule.

Answers

Answer:

a. Working trial balance.

Explanation:

Working trial balance -

It refers to as the balance sheet , which is on the stage of any alterations , is referred to as working trial balance .

It is not the final balance sheet and hence various changes can be done , like adding and subtracting many entries .

The advantage of a working trial balance is to test the complete set of entries in order to find the effect on the financial statements .

Hence , from the given information of the question ,

The correct answer is a. Working trial balance.

A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required margin. If the stock declines in value by 25%, the customer's equity in the account will:

Answers

Answer:

It will increase by 50%

Explanation:

Equity is given as: credit - short market value.

Find attached below table of solution

Gilmore, Inc., just paid a dividend of $3.20 per share on its stock. The dividends are expected to grow at a constant rate of 6.25 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock. What is the current price?

Answers

Answer:

The current price is $55.65 as computed below.

Explanation:

The current price of the stock can be computed using the below formula:

Price=dividend/(rate of return-growth rate)

price=$3.20/(0.12-0.0625)

Price=$55.65

The stock of Jerome can be priced at $55.65 based on the fact that it offers return of 12% and the return is expected to grow at 6.25% in perpetuity.

This return shows that the actual return on shares is dividend dividend yield  as well as gains yield.Dividend is the return on the share based on dividends receivable from the share, while gains yield stem from share price appreciation

Final answer:

The current price of the stock is $55.65 per share.

Explanation:

To calculate the current price of the stock, we can use the Gordon Growth Model formula. The formula is:

Current Price = Dividend / (Required Return - Growth Rate)

In this case, the dividend is $3.20 per share and the growth rate is 6.25%. The required return is 12%. Plugging in these values into the formula, we get:

Current Price = $3.20 / (0.12 - 0.0625) = $3.20 / 0.0575 = $55.65 per share

Therefore, the current price of the stock is $55.65 per share.

Annie enjoys restoring old homes. She treasures the beauty and attention to detail that she finds in old buildings. To help her, she hires artisans she works with regularly who share her value of: a. history. b. profit. c. self-sacrifice. d. customer satisfaction.

Answers

Answer:

A. History.

Explanation:

As Annie enjoys restoring old homes. She treasures the beauty and attention to detail that she finds in old buildings. To help her, she hires artisans she works with regularly who share her value of history. Annie finds it interesting to restore the genuine beauty of the old buildings, she want to make them new again by restoring their old form, design and style. She undoubtedly, should work with those person who share the same taste and love for history. It will become very easy for her to work in more efficient and effective way. She can also share her ideas freely and openly with a person having the same likeness of making old buildings new ones.

This inventory system requires a physical inventory count to be made at least once during the year. Answer 1 This inventory system computes and records cost of goods sold at the time of sale. Answer 2 This inventory system computes and records cost of goods sold only at the end of the period. Answer 3 This inventory system computes and records sales revenue at the time of sale.

Answers

Answer:

Answer 2 : This inventory system computes and records costs of goods sold at the end of the period.

Explanation:

The time at which records of costs of goods sold is done determines a company`s inventory system.

Two inventory systems exist which companies can use in their business which are Periodic and Perpetual inventory systems.

Periodic Inventory System

In this system recording of cost of goods sold is done at the end of a certain period.It could be after a week, month or year.This is the type is system that is  being explained in the question.

Perpetual

The other is the other system of recording cost of goods sold. In this system cost of goods sold is computed at end of each sale ( at the time of sale)

Hence it is important to note when the count of inventory is done. If at the end of a period then its Periodic and when count is done after every sale then that is Perpetual.

The system described suggests a periodic inventory system, where a physical count is made at least once a year, and cost of goods sold is computed at the end of the period.

The inventory system is describing the periodic inventory system, which requires a physical inventory count at least once during the year and computes and records the cost of goods sold (COGS) only at the end of the accounting period. This system contrasts with the perpetual inventory system, which records COGS at the time of sale. Both systems will record sales revenue at the time of the transaction. Understanding these systems is crucial for accurate financial reporting and management, as they directly impact the valuation of inventory on the balance sheet and the computation of gross profit on the income statement.

Maintaining accurate inventory records is integral to reporting a firm's financial status. Inventory valuation methods, like FIFO and LIFO, can affect the reported value of inventory and, consequently, the financial outcomes such as net income. In practice, changes in inventory levels are considered a form of investment and are accounted for in the calculations of Gross Domestic Product (GDP), reflecting the production and consumption cycles within an economy.

Consider two points on the production possibilities frontier (PPF): point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is:_______.a. 2 apricots.
b. 1 orange.
c. 98 apricots.
d. 3 oranges.

Answers

Your answer is: b. 1 orange.

When posting from the sales journal to the accounts receivable subsidiary ledger, write the letter "S" plus the page number on which the transaction was recorded in the Posting Reference column of the subsidiary ledger account.

Answers

Answer:

The correct answer is True.

Explanation:

The general ledger is one of the most basic used in day-to-day accounting. In this, all the economic operations that are carried out in a business are registered in a chronological way for its subsequent transfer to the major. When registering an accounting entry in the daily book it is necessary to understand what we are going to register and always remember that the sum of all debits must be equal to the sum of all credits to comply with the principle of double entry. This means that every time we debit an account, we must also give a credit for the same value to the other affected account.

Javier spends all his income on peanuts and chewing gum. The last dollar spent on peanuts yeilds 14 utils and the last dollar spent on chewing gum yields 6 utils. To increase total​ utility, Javier should spend less on peanuts and more on chewing gum?

Answers

Answer:

False

Explanation:

Javier's utils per dollar of peanuts = 14 utils per $1 spent

Javier's utils per dollar of chewing gum = 6 utils per $1 spent

Since the utils per dollar that Javier obtains from consuming peanuts are higher than those from consuming chewing gum, if he wants to increase his total utility, he should purchase more peanuts.

Who is the highest ranked person responsible for making sure an appealing, high-quality [product] is produced on time and within budget in film and theatre?

Answers

Answer:

Producer

Explanation:

The producer of a movie, theater play, sitcom, etc., is the person in charge of securing everything that is needed in order for the movie, play, etc., to be properly carried out. That means he/she is responsible for gathering the necessary funds and paying salaries and all other expenses. The producer is also responsible for dividing the money generated by the movie, play, etc., and distributing it to the investors.

The public debt surpassed GDP during the 1940s 1950s 1960s 1970s 1980s 1990s early 2000s then fell steadily, reaching its lowest point in the . From that decade on, the public debt as a percentage of GDP has increased consistently, except for a decline in the late . By 2010, the debt had risen to ________.

Answers

Answer:

The public debt as a percentage of GDP in the United States, reached its lowest point in recent decades, in 2001, when it represented 54.9% of GDP.

After that year, this indicator began to increase, at first slowly, and from 2007 on very rapidly, propelled in part by the financial crisis. In 2010, the public debt as percentage of GDP was 89.3%.

A recent national survey of U.S. adults revealed that 52% reported that they considered or made a career decision, such as looking for a new job, declining a promotion, or quitting a job, because of:___________.

Answers

Answer:

The options for this answer are the following:

A. Lack of medical coverage

B. Sexual harassment at workplace

C. Stress in the workplace

D. Lack of upward mobility

The correct answer is C. Stress in the workplace .

Explanation:

Occupational stress is a type of stress associated with the scope of work that can be punctual or chronic, although most cases respond to the second type mentioned.

Positive stress (eustress) refers to when the stress response occurs in an adaptive way, the consequences of such response do not harm the integral health of the subject and its duration is coupled with the duration of the stress stimulus, eg, the response of stress that is triggered during your first day of work is adaptive (positive stress) because it implies that you have to be alert to attend to new stimuli (tasks, bosses, colleagues, company procedure, etc.).

When does this response cease to be adaptive and therefore can it become negative stress? Well, if this stress lasts more than a month, the response intensifies over time and begins to interfere with the worker's health (insomnia, tachycardia, anxiety, depression, among others) appear, it would be a case of negative work stress and measures should be taken.

You can be jailed up to six months and fined up to $1,000 if you _________________. A. are convicted of being a habitual truant from school B. abandon or dump an animal on the road C. drive faster than the posted speed limit

Answers

Answer:

Option B Dumping or Abandoning an animal on a highway.

Explanation:

The fine imposed on dumping or abandoning an animal on a highway unintentionally (negligent) will be $1,000 whereas a fine of $1,000 and jail up to six months will be for the person who intentionally dumbed or abandoned an animal on a highway. The durantion of jail punishment is subjected to the judgement of judge.

Final answer:

Depending on the jurisdiction, penalties like jail time up to six months and fines up to $1,000 can be applicable for offenses such as habitual truancy, animal abandonment on roads, and excessive speeding.

Explanation:

The penalties mentioned in your question, being jailed for up to six months and fined up to $1,000, can vary depending on jurisdiction and nature of the crime. However, in many cases, such punishments can be applied to individuals who are convicted of being habitual truants from school, abandoning or dumping an animal on the road, or driving faster than the posted speed limit.

Legal Consequences for Truancy, Animal Dumping, and Speeding

A, B, and C in your question reflect varied illegal actions that could follow serious punishments.

A habitual truant from school can face such penalties in some locations if truancy laws are enforced.Abandoning or dumping an animal on the road can also lead to fines and jail time under animal cruelty laws. Similarly, extreme cases of speeding or reckless driving can draw significant fines and potentially even jail time.

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Quality that measures usefulness vs. price paid is which definition of quality? A. Conformance to specifications B. Fitness for use C. Value for price paid D. Support services E. Psychological

Answers

Answer:

Option C. Value for price paid

Explanation:

The quality of goods are measured with the usefulness of the goods to the consumer and how much he is willing to pay for it and the product is determined by the state of  how much it is being useful, profitable, or beneficial to the consumer. Consumers pay higher amount for the product which has the higher utility for the consumer and it also shows the quality of the specific product to the consumer. The main determinants of the product's quality are its price and its utility. Value of price paid is determined by the utility or usefulness of the product for each unit of money paid to purchase it.

A local pizza parlor located on campus offers a student rate for its pizza lunch special. This is a form of __________. a. predatory pricing and is legal. b. predatory pricing and is illegal. c. bait-and-switch pricing and is legal. d. price discrimination and is illegal. e. price discrimination and is legal.

Answers

Answer:

E. Price discrimination and is legal

Explanation:

Price discrimination is a situation whereby an organization decides to sell its commodity at different prices to different customers. Here, the pizza parlour offers student rate for students that's different from the rate offered to other customers that are not students. It is the sales of a particular type of product to different buyers or consumers at different prices. It is legal. It only becomes otherwise (illegal) if it is done on the basis of racial discrimination, religious discrimination and so on.

Answer:

The correct answer is e. price discrimination and is legal.

Explanation:

Price discrimination, also known as price differentiation, occurs in situations where a company sells the same product at different prices, either to the same consumer or to different ones. The study of this strategy occurs naturally in cases of monopolies because they seek to sell additional units to consumers without reducing the price of units that have already been sold in a way that allows them to maximize their profits. There are examples of price discrimination in transport and storage companies. To optimize price discrimination, companies will have to control and prevent resale, and they will also have to differentiate consumers depending on their willingness to pay. Although preventing resale is often not complicated, differentiating consumers is a more complex and expensive process.

One of the core problems that created the financial meltdown of 2008 was that large loans were made to individuals who could not repay them, and the finance companies purchased these bad debts without realizing how poor the prospects of repayment were. Which of the following decision-making errors was made by the lenders and borrowers?
A) hindsight bias
B) availability bias
C) overconfidence bias
D) confirmation bias
E) anchoring bias

Answers

Answer:

d. confirmation bias

Explanation:

Confirmation bias -

It is a type of cognitive bias , where some prior data or information is used to confirm some belief or information , is referred to as confirmation bias .

In simple words ,

It is a type of information which helps to confirm some recent thoughts or beliefs .

Hence , from the given scenario of the question ,

The correct answer is d. confirmation bias .

Answer:

The correct answer is letter "D": confirmation bias.

Explanation:

Confirmation bias is a cognitive process in which individuals tend to favor input to confirm certain beliefs or biases they already had. The term relates to behavioral finance at the time of recognizing subjective and poor decision-making.

This happens when investors are too optimistic about certain instruments, so they look for information that can ensure that their position on the instrument is correct and dismiss any input that might indicate the opposite, even if it is true.

The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the registered bond. bond debenture. bond indenture. bond coupon.

Answers

Answer:

The correct answer is Bond indenture.

Explanation:

The bond indenture is a contract through which a person called a guarantor is obliged to respond for the obligation of the principal debtor, it is an accessory obligation under which one or more persons respond to an obligation of another, committing to the creditor to comply with it in whole or in part, if the principal debtor does not comply.

The bond is held for the purpose of guaranteeing a third party obligation, but in which the creditor can only charge the guarantor when the principal debtor of the obligation does not comply.

All of the following may deduct education expenses except
a. Paige is a self-employed accountant who incurs expenses to take advanced tax courses.
b. Marvin is a high school teacher who incurs expenses for education courses to meet new course requirements to maintain his job.
c. Hope is an independent business consultant who incurs expenses to pursue an MBA degree.
d. Richard is a self-employed dentist who incurs expenses to attend a convention on new techniques in oral surgery.

Answers

Answer:

The correct anser  is a. Paige is a self-employed accountant who incurs expenses to take advanced tax courses.

Explanation:

Public spending on education refers to disbursements at different levels of education, from preschool to tertiary, including auxiliary services and research and development related to education.

c. Hope is an independent business consultant who incurs expenses to pursue an MBA degree.

To determine who cannot deduct education expenses, we need to look at IRS guidelines regarding tax deductions for education.

According to the IRS, tax deduction eligibility for education expenses often applies to individuals whose education maintains or improves required skills for their current jobs

Let's break down each option:

Paige is a self-employed accountant taking advanced tax courses. This is generally deductible because it improves her job skills.Marvin is a high school teacher taking new required education courses to maintain his job. This is deductible because it's necessary to keep his current employment.Hope is pursuing an MBA degree as an independent business consultant. Generally, while this education might be beneficial for her business, it is often not considered directly related to maintaining or improving skills for a current job since an MBA can qualify her for a new trade or business, making these expenses non-deductible.Richard is a self-employed dentist attending a convention on new oral surgery techniques. This is deductible as it directly maintains and improves his professional skills.

Therefore, the correct answer is: c. Hope is an independent business consultant who incurs expenses to pursue an MBA degree.

A construction firm needs to hire a construction superintendent, whose primary responsibilities involve organizing, supervising, and inspecting the work of several subcontractors. It administers a construction-error recognition test, where an applicant enters a room that has been specially constructed to have 10 common and expensive errors and where he/she is asked to record as many problems as he/she can detect. The firm is using a:______.a. concurrent validation.b. predictive validation.c. content validation.d. criterion-related validation.

Answers

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the construction firm in this scenario is using content validation. This term refers to a research methodology that is used in order to measure the validity of a certain test in order to make sure that it is providing the information for which it was created. Which is why they test the individual to see if they can spot the 10 errors.

Pare, Inc., purchased 10% of Tot Co.'s 100,000 outstanding shares of common stock on January 2, 20X1, for $50,000. On December 31, 20X1, Pare purchased an additional 20,000 shares of Tot for $150,000. There was no goodwill as a result of either acquisition, and Tot had not issued any additional stock during 20X1. Tot reported earnings of $300,000 for 20X1. What amount should Pare report in its December 31, 20X1, balance sheet as investment in Tot?A. $170,000
B. $200,000
C. $230,000
D. $290,000

Answers

Answer:

C) $230,000

Explanation:

Since Pare has significant influence over Tot (it owns 30% of its stock), it must record the transactions using the equity method. Pare purchased the extra 20% of stocks on December 31, so it will only report dividends for the original 10%.

total ownership:

100,000 stocks x 10% = 10,000 stocks at $50,000

20,000 stocks at $150,000

total 30,000 stocks (30%) at $200,000

earning's share (using equity method):

$300,000 x 10% = $30,000

total investment account = $200,000 + $30,000 = $230,000

An entrepreneur can best be characterized as someone who

Answers

Final answer:

An entrepreneur is someone who identifies a market need, and conceives and initiates a new business venture to meet that need, enduring significant personal financial risk. They are typically visionaries who are willing to take risks and are involved in every aspect of their business.

Explanation:

An entrepreneur can best be characterized as someone who conceives, launches, and operates a new business, often with considerable personal financial risk. They typically identify a market need, develop a business model, and actively participate in every facet of business operations. These individuals tend to be creative thinkers who possess a unique blend of vision, perseverance, and a willingness to take risks.

For instance, if someone recognized a demand for organic, home-delivered meals and decided to launch a company to satisfy that need, this individual would be considered an entrepreneur. They identified a gap in the market, took the initiative to start a business, and are willing to accept the potential risk associated with the venture.

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An entrepreneur can BEST be characterized as someone who takes risks in order to acquire profits. Thus, option (b) is correct.

Entrepreneur: A person who hires workers and buys resources in order to produce goods and services.Entrepreneurs are often called risk-takers because they invest their money and resources in ventures that have uncertain outcomes.They organize resources and engage in production with the hope of earning profits by identifying and meeting consumer needs.Successful entrepreneurs carefully calculate risks and weigh them against potential benefits before starting a project.An entrepreneur's willingness to take calculated risks is a key driving force in a market economy, leading to innovation and economic growth.

Complete Question:

An entrepreneur can BEST be characterized as someone who:

a. tries to persuade officials to pass favorable laws.

b. takes risks in order to acquire profits.

c. signals businesses what and how much to produce.

d. seeks to engage in a voluntary exchange.

Other Questions
Our Sun undergoes slight orbital motion mostly due to the gravitational force exerted by Jupiter. If our solar system only contained Saturn, how would the Sun's orbital period differ? Suppose the expected export demand for the US goods has fallen (say due to potentially intensifying trade war). What are the implications of this expected future change on the current exchange rate? Draw the diagram and explain. Chandra created a budget matrix based on her regular and expected expenses for the year. ExpenseJan.Feb.Mar.Apr.MayJuneJulyAug.Sept.Oct.Nov.Dec. cell phone$71$71$71$71$71$71$71$71$71$71$71$71 rent$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025$1,025 gym dues$75$75$75$75 internet$25$25$25$25$25$25$25$25$25$25$25$25 auto insurance$425$425 gas$120$120$120$120$120$120$120$120$120$120$120$120 food$145$145$145$145$145$145$145$145$145$145$145$145 To the nearest cent, Chandras average monthly expenses are $. What is -6 2 flipped on the y axis In order to improve the condition of your muscular system, you could participate in aerobic activities at least ________ Maggie has just started working for a law firm. During her first week on the job, she decides to join the firm's volleyball team to get to know her co-workers better. According to Maslow's hierarchy of needs, joining this team is Maggie's attempt to fulfill her ________ needs. g Given that the mean cuteness of the current herd is 39.7 OMGs, the BAF workers picked the 16 cutest adults and allow them to reproduce with each other. The mean cuteness of these chosen individuals is 41.5 OMGs. What is the predicted mean cuteness of the next generation of alpacas in the BAF environment?a. 39.9 b. 40.4 c. 41.5 d. 42.5 How does the pie chart support the text? Check all that apply Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, theysnap in two. The cause is something that Beginners Run did not know about and could not have discovered. Beginners Run breacheda. the merchants implied duty of inspection.b. the implied warranty of merchantability.c. no duty or warranty because Beginners Run knew nothing about the defect that madethe goods unsafe.d. no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted. How do you benefit from holding a job?You develop large spending habits because you now have a steady income.You develop character.You feel a deep sense of dissatisfaction when your job doesn't go well.You get used to doing tasks that disinterest you. Whats do you like drama or theater mean A competitive strategy to be the low-cost provider in an industry works well a. when price competition among rival sellers is especially sluggish. b. there are numerous ways to achieve product differentiation that have no value to buyers. c. buyers incur high costs in switching their purchases from one seller/brand to another. d. industry newcomers use introductory low prices to attract buyers and build a customer base. e. industry newcomers use high introductory prices to let buyers know they have a superior product to build a customer base. Which of the following is true about random drug testing of employees? It screens randomly-selected employees at various times through the year. It randomly tests selected applicants before hiring, as a part of a physical examination. It tests an employee believed to be impaired by drugs and unfit for work. It regularly tests employees from randomly-selected job categories or job levels. ) This country is a communist dictatorship that was established after World War II and has the city of Pyongyang as its capital. A large health care system in the U.S. has established a program of tracking, evaluating, addressing, and preventing medical errors by its providers. This measure is most directly related to improving which aspect of the health care system? ANSWER TO BE NAMED BRAINLIEST GET A THANK YOU A FOLLOW AND 25 PPTSWhat is the volume of the right rectangular prism shown?24 cm3192 cm332 cm348 cm3 When a piece of solid candle wax is placed in a pan on the stove and heated slowly, the candle wax willA)explode.B)turn into a gas.C)turn into a liquid.D)burn and disappear. Chondra has been diagnosed with dyslexia and is eligible for special education services, but, instead, she is placed in a regular education classroom with support. This is called _____. On January 1, 2020, Hat Trick Manufacturing exchanged some equipment for a $750,000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 10%. The present value of $1 at 10% for three periods is 0.75. Hat Trick Manufacturing included __ as interest revenue on the 2021 income statement. What season is it in the northern hemisphere in the diagram below? A. Spring B. summer C. fall D. winter