Company P Company uses the equity method to account for its January 1, 20X1, purchase of 30% of Company S's common stock. On January 1, 20X1, the market values of Company S's FIFO inventory and land exceed their book values
How do these excesses of market values over book values affect Company P's reported equity in Company S's 20X1 earnings? Inventory Excess Land Excess a. Decrease Decrease
b. Decrease No effect
c. Increase Increase
d. Increase No effect
b
Business
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A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called ________
A) opportunity cost B) market pricing C) tactical pricing D) price escalation E) transfer pricing
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Which one of the following subtotals or totals would appear in a multiple-step, but not a single-step income statement?
a. Income tax expense b. Income from operations c. Cost of goods sold d. Net income
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