Intercompany sale of inventory  a.should be eliminated only if the inventories are sold to third party b.should not be eliminated c.should be eliminated regardless of whether the inventories are sold to third party or not d.should be eliminated only if the inventories remain in the buying affiliate’s balance

Q: Selected data from Decco Company are presented below: Total assets $1,600,000 Average assets…

A: Formula used: Profit Margin = ( Net income / Net sales ) x 100

Q: Ocean Ltd is the parent entity to the wholly owned subsidiaries of River Ltd, Creek Ltd, and Puddle…

A: The carrying value of equipment in the books of Ocean Ltd at the date of sale is $550,000 and the…

Q: Based on predicted production of 25,000 units, a company budgets $280,000 of fixed costs and…

A: Working Note: Variable cost per unit = Budgeted Variable cost / Budgeted production =…

Q: Income channeled into a Roth IRA will be particularly attractive to those with high incomes…

A: Roth IRA A Roth IRA refers to the individual retirement account that allowed qualified withdrawals…

Q: A taxpayer disposed of two homes in Ontario in 2021, (both of which met the qualifications of a…

A: A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450…

Q: respectively.) Leonard earned $35,000 at the new location. The maximum deduction that Leonard can…

A: Deduction is the amount which is claimed by the taxpayer during the year and through which the…

Q: Prepared ledger account for following transaction: 1- Jan Started business with $2,000 in the bank…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Complete for Cash: 2011  $12,000 2012  $16,000 Increase Amount ___A___ %(to nearest hundredth%)…

A: Horizontal analysis is the way to calculate the variance from the different year by year to show an…

Q: 7. Keep-or-Drop: Traditional Versus Activity-Based Analysis Nutterco, Inc., produces two types of…

A: Contribution margin takes into consideration the variable expenses of the product. Operating Income…

Q: x invoic

A: A tax invoice is a statement issued for the delivery of taxable goods and services. A tax invoice…

Q: Net sales CGS Operating expenses Determine the Gross profit and net profit 336500 132200 109000

A: Formula: Net profit: Deduction of all expenses from total revenues derives the net profit. Net…

Q: Discuss the effects of ratification in voidable contracts

A: A contract that contains one or both of these flaws can nonetheless be regarded legally binding if…

Q: Harrison Co. purchases 5,000 of the 50,000 outstanding ordinary shares of Taylor, Inc for £500,000…

A: Formula: Investment balance at year end = Beginning investment balance + net income - Dividends paid

Q: True or False Product cost under Variable costing are DM, DL and VOH only.     Under absorption…

A: Solution:- Discussions of above statements as follows under:-

Q: Net cash provided by operating activities Net cash provided by investing activities Net cash flow…

A: The cash flow statement is prepared to record cash flow from various activities during the period…

Q: In 2020 ABC Co. decided to change to the FIFO method for inventory. The Cost of Goods Sold in 1919…

A: In the year 2019. Under LIFO, The cost of goods sold is $300,000 Under FIFO The cost of goods sold…

Q: 1. PGold Company provided the following trial balance on December 2020: Total credits amounting to…

A: The stockholder’s equity represents the assets left for stockholders after all the liabilities have…

Q: FRT Company sells each unit for $ 60, variable costs for each unit $ 25, Fixed costs $ 200000 Wants…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Question 3 L a) The Manchester based company. We Know Capital Limited (WIC), has been hired as…

A: Calculation of weighted avg cost of capital

Q: Make-or-Buy, Traditional and ABC Analysis Brees, Inc., a manufacturer of golf carts, has just…

A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…

Q: Statement 1: An intercompany sale will affect the consolidated net income the same way regardless if…

A: Downstream sale is the sale where the sales take place from the parent company to the subsidiary…

Q: Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is…

A: Warranty is a selling term provided by the seller to the buyer to repair or replace the goods sold…

Q: Determine the due date and the amount of interest due at maturity on the following notes:   Date of…

A: Interest on Note = Face value X Rate of interest X Tenure in days/ 360 days

Q: What are major programs with respect to the Single Audit Act of 1984 and amendment of 1996?…

A: Audit An audit refers to the official inspection or reviewing of the organization’s financial…

Q: Starting from the separate inventory balances of the affiliates, the consolidated inventory balance…

A: Consolidation of accounting books means combination of accounts of parent company and subsidiary…

Q: Why do you think it is common for new CEOs to uncover some problems with the financial statements…

A: Accounting is the process of recording financial transactions that affect a company. The accounting…

Q: 35.The following were taken from the income statement of ABC corporation for the year 2007: Gross…

A:

Q: Solution: One (1) Game Fixed Cost for Food (P100,000) Space (P240,000) Booth Space (P1,750) Total…

A: The breakeven point (BEP) reflects the number of units of sales and the amount of sales needs to be…

Q: Financial statement of a company taken from the internet. O Primary data

A: Introduction: Data can be of two types: 1) Primary data. 2 ) Secondary data.

Q: . At year-end, Photomath Permi Company purchased goods costing P500,000 FOB destination. These goods…

A: As per IAS 2, Inventories,  Cost of inventory includes purchase price, import duties, transport…

Q: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit…

A: Introduction: Break even point in units: At this point there is no profit and no loss for the units…

Q: Consider gross earnings of $59,000. • The standard deduction is $12,000 and itemized deduction is…

A: An income tax is kind a type of tax that governments impose on income generated by businesses and…

Q: on 31 december 2008 e bain had bad debts totalling 24000 he decided to write off the following debts…

A: In the given question the amount of bad debts expense for current year will equal to the Balance of…

Q: Assume that total sales revenue for 2018 is projected to be $1,153,549. Assume also the following…

A: Computation of total cost Packaged cans and bottles + kegs + shrinkage + contract labor + direct…

Q: equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and…

A: current assets are those are assets that are said to be realised within 1 year. the current assets…

Q: Grand Chocolate Inc. is a producer of premium chocolate based in Palo Alto. Grand Chocolate Inc.…

A: Variable cost is the one that changes with the variation in the units produced. However, fixed cost…

Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…

A: Formula: Gain on the sale of equipment = Sale value of Asset - Net book value of Asset

Q: Consolidated inventory balance is composed of the book values of the parent’s and the subsidiary’s…

A: The consolidated financial states are those financial states that represent the number of…

Q: 5 An investor has borrowed $126,000 in the current year at 4.5% interest rate, with a commitment…

A:

Q: Which of the following is not true in regard to selling fixed assets? a.If the selling price is more…

A: The journal entry for sale of fixed asset Cash A/C dr (sale amount) Loss on sale (if bookvalue >…

Q: why is the Canada Revenue Agency generally not permitting the total cost of an asset to be expensed…

A: Capital Expenditure A capital expenditure that is incurred in acquiring or increasing the value of…

Q: The capital structure of ABC Company is: Debt 40%. Equity 60%.  The cost of debt is 13%.  The…

A: Weighted average cost of capital is the average cost of capital from all sources of capital. Here in…

Q: enue = 9.5 M expense = 4M terest rate=1

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first threr subparts as per…

Q: On October 31, the stockholders' equity section of Manolo Company's balance sheet consists of common…

A: The stockholders' equity section records the transactions that relates to the shareholders of the…

Q: A B 11.3 (LO 2), AP During its first year of operations, Mona Corporation had these transactions…

A: The journal entries are prepared to record day to day transactions on regular basis.

Q: What is the main source of the US fiscal imbalance and what are the painful choices we must face?

A: Income Taxes- Federal, state, and local governments levy taxes on the gross income of individuals…

Q: The process that determines the present value of a single payment or stream of payments to be…

A: Discounting : Discounting determines how much will be the worth of money if it is received today…

Q: 1 Contributed K50 000 as initial capital and deposited this into the business bank account. 2…

A: The T-accounts are prepared to post the balances to specific accounts of the business.

Q: Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in…

A: Tax is an important source of revenue to the government.There are two types of taxes namely, direct…

Q: Selected data from Decco Company are presented below: Total assets $1,600,000 Average assets…

A: Formula: Return on Common stock holders equity = ( Net income / Average Common stockholders equity )…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.