Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Calculating Transfer Price Best Inc. has a number of divisions, including the P1 Division, a producer of hydraulic pumps, and A1 Division, a manufacturer of motors. P1 Division produces the h20-model pump that can be used by A1 Division in the production of motors that regulate the raising and lowering of the motors's crane derrick.
The market price of the h20-model is $694, and the full cost of the h20-model is $540.
Required:
1. If Best Inc. has a transfer pricing policy that requires transfer at full cost: What will the transfer price be? $ Do you suppose that P1 Division and A1 Division will choose to transfer at that price? A1 Division P1 Division
2. If Best Inc. has a transfer pricing policy that requires transfer at market price: What would the transfer price be? $ Do you suppose that P1 Division and A1 Division would choose to transfer at that price? A1 Division P1 Division
3. Now suppose that Best Inc. allows negotiated transfer pricing and that P1 Division can avoid $120 of selling expense by selling to A1 Division. Which division sets the minimum transfer price? What is the minimum transfer price? $ Which division sets the maximum transfer price? What is the maximum transfer price? $ Do you suppose that P1 Division and A1 Division would choose to transfer somewhere in the bargaining range?
In 2009, Seda Corp. acquired 6,000 shares of its $1 par value common stock at $36 per share. During 2010, Seda issued 2,000 of these shares at $40 per share. Seda uses the cost method to account for its treasury stock. Prepare the journal entry upon ..
Since the revenue rate cannot be increased and costs will not be decreased if the repairs are made, can the cost of the repairs be capitalized? Why or why not?
Lefler Company is considering purchasing equipment. The equipment will produce semi-annual cash inflows of $22,000 for 3 years. Lefler requires a minimum annual rate of return of 8%. Assuming that the cash inflows are received at the end of each six-..
What are some of the characteristics of a weak corporate governance structure that would promote fraud?
Foto Company manufactures and sells a product called JYMP. Results from last year from the sale of JYMP appear below: Calculate the increase in company profits if the JYMP product line is discontinued. Do not use decimals or type the word increase af..
A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period. As a result, in preparing this period's reconciliation, the amount of this deposit should be:
Determine the unit product cost of each product for the current period using the activity-based costing approach.
Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Colby Hepworth has just invested $475,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment.
seagren industries inc. manufactures in separate processes furniture for homes. in each process materials are entered
Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014: In the operating activity section of the statement of cash flows, what amount would be shown for colle..
What is the amount of goodwill resulting from the business combination - On April 1, year 1, Dart Co. paid $620,000 for all the issued and outstanding common stock of Wall Corp.
At the beginning of the year, Global Minds Inc. issued $100 million (maturity value) of 20-year debentures.Calculate the proceeds received by Global Minds when the bonds were sold.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd