Partridge purchased a 60% interest in Sparrow on January 1, 2016, for $240,000 . At the time of the purchase, Sparrow had the following stockholders' equity:
Common stock ($10 par) $ 80,000
Retained earnings 120,000
Total stockholders' equity $200,000
Any excess is attributable to equipment with a 10-year life. On January 1, 2016, the retained earnings of Sparrow was $175,000 . The entire investment was sold for $300,000 on January 1, 2016 . The gain was ____.
a. $87,000
b. $90,000
c. $27,000
d. $78,000
a
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According to the theory of comparative advantage, which of the following is not a reason why countries trade?
A. Costs are higher in one country than in another. B. Prices are lower in one country than in another. C. The productivity of labour differs across countries and industries. D. Exports give a country a political advantage over other countries that export less.
A detailed quarterly plan that states how many units of product each salesperson on the team needs to sell per month is an example of a(n) ________
A) business plan B) financial plan C) strategic plan D) functional plan E) operational plan