What adjustment will be needed to arrive at x consolidated

Assignment Help Financial Accounting
Reference no: EM132743675

During 2019, Y Company a 90% owned subsidiary sold inventory to its parent, X Company, for $1,000,000 at a 25% mark-up on cost. 30% of this inventory remained in X's inventory at December 31st. 2019. Both companies have a tax rate of 40% and a December 31st. year end.

Problem 1: What adjustment will be needed to arrive at X's consolidated inventory for the year ended December 3st. 2019?

a. A deduction of $75,000
b. A deduction of $60,000
c. A deduction of $36,000
d. A deduction of $45,000.

Reference no: EM132743675

Questions Cloud

Explain bnc cost of equity : The cost of debt is 9 percent, the tax rate is 35 percent, and the cost of equity for an all-equity firm is 13 percent. What will be BNC's cost of equity?
Calculate the amount of manufacturing overhead cost incurred : Calculate the amount of Manufacturing overhead cost incurred during the year. Direct Materials Inventory, beginning of the year$ 5,500
Importance of international capital structure : What is the importance of international capital structure? What are potential risks when working with cash, credit and inventory management?
Determine whether or not an arbitrage opportunity exists : If the model and the table are both correct, determine whether or not an arbitrage opportunity exists. If not, why not? If so, explain how to exploit it
What adjustment will be needed to arrive at x consolidated : 30% of this inventory remained, What adjustment will be needed to arrive at X's consolidated inventory for the year ended December 3st. 2019?
Purpose of a loan amortization schedule : What is the purpose of a loan amortization schedule?
Demonstrate the key aspects of research proposal : This assessment gives students an opportunity to demonstrate the key aspects of their research proposal - Definition of the methodology chosen for the study
How should sm recognize revenue for the arrangement : Vinyl records are returning! Sunny Music [SM], How should SM recognize revenue for this arrangement? Cite appropriate literature in support of your response.
What factors will affect the planning of the audit : Diacos ltd is a large well established computer parts manufacturer that sells parts of computer stores. changing technology makes the industry very competitive.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the accuracy of any given forecasting method

What three most popular methods are used to determine the accuracy of any given forecasting method? And in what circumstances would they be used.

  What irs form is filed for a partnership

Name three items that will increase and three items that will decrease the Basis in a Partnership. What IRS form is filed for a Partnership?

  How calculate current value of net cash flows for ten years

Even Incorporated has been operating a printing and design business. Calculate the current value of net cash flows for 10 years using a discount rate of 14%.

  Accounted for under the weighted-average method

In February, one of the processing departments at Manger Corporation had beginning work in process inventory of $25,000 and ending work in process inventory of $34,000. During the month, $290,000 of costs were added to production and the cost of unit..

  What will be initial margin deposit and maintenance

On 05-Oct-2018, If you want to long 6 contracts in this future, what will be your initial margin deposit and maintenance margin amount?

  How would that affect its operating income

Jarvis Foods produces a gourmet condiment which sells for $10.00 per unit. Variable costs are $7.50 per unit, and fixed costs are $18,000 per month. Jarvis is currently selling 8,000 units per month. If Jarvis reduces the selling price down to $9.00 ..

  Record all of the applicable acquisition

Record all of the applicable acquisition - construction entries for each of these assets.

  Compute what is the bonds price

Compute What is the bonds price. Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000.

  Calculate the stock capital gains yield

Calculate this stock's capital gains yield if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 4%.

  Compute the total deduction for these contributions

Compute the total deduction for these contributions. The AGI in each case is before any deduction Neither spouse is an active participant in a qualified retirement plan

  Prepare correcting general journal entries

Prepare correcting general journal entries required at December 31, 2013 assuming that books have not been closed -Determine the proper balance in Allowance

  What is the current price of the preferred stock

What is the current price of this preferred stock given a required rate of return of 12.5 percent? (Round answer to 2 decimal places, e.g. 15.25.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd