Basics of perspective of the combination

Reference no: EM13149559

During 2009, Von Co. sold inventory to its wholly-owned subsidiary, Lord Co. The inventory cost $30,000 and was sold to Lord for $44,000. From the perspective of the combination, when is the $14,000 gain realized?

a. When the goods are sold to a third party by Lord.

b. When Lord pays Von for the goods

c. When Von sold the goods to Lord

d. No gain can be recognized since the transaction was between related parties

Reference no: EM13149559

Questions Cloud

Determining break-even point in dollars : Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Spor..

How much time (in minutes) will it take to heat the water : A portable electric water heater transfers 255 watts (W) of power to 5.5 L of water, where 1 W = 1 J/s. How much time (in minutes) will it take to heat the 5.5 L of water from 24 degrees C to 41 degress C? (Assume that the water has a density of 1..

Determine the eoq-average inventory : Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

Probability that mean number of attendance day are in range : Overall, the students' class attendance days (per year academic) is normally distributed around 180 days with a standard deviation of 15 days. What's the probability that the mean number of attendance days will be between 190 and 200?

Basics of perspective of the combination : During 2009, Von Co. sold inventory to its wholly-owned subsidiary, Lord Co. The inventory cost $30,000 and was sold to Lord for $44,000. From the perspective of the combination, when is the $14,000 gain realized?

Estimate the ph of the lake : A wildlife biologist is interested in testing the pH of the water in a lake. He obtains a 200. mL sample of the water and titrates this sample with a .050 M NaOH solution.

Partnership bottom line net income : What are the partnership's bottom line net income and its separately stated items?

What happens when tariffs are imposed : What happens when tariffs are imposed, in terms of the importing and exporting countries? Use graphs as needed and explain your answers thoroughly.

How much heat is evolved : How much heat is evolved when 27.0 g of glucose is burned according to this equation? C6H12O6 + 6O2 → 6CO2 + 6H2O; Δ H comb. = -2808kJ

User Account

All Pages