On whose books should the cost of the inventory appear at the December 31, 2012 balance sheet date?
a. Carne Corporation
b. Nolan Corporation
c. Norwalk Bank
d. Nolan Corporation, with Carne making appropriate note disclosure of the transaction
Answer: a. Carne Corporation
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Which of the following statements regarding best efforts IPOs is FALSE?
A) For smaller IPOs, the underwriter commonly accepts the deal on this basis. B) The underwriter does not guarantee that the stock will be sold, but instead tries to sell the stock for the best possible price. C) Often these arrangements have an all-or-none clause: either all of the shares are sold in the IPO, or the deal is called off. D) If the entire issue does not sell out, the underwriter is on the hook.
For securities classified as trading, what do companies disclose in the notes to the financial statements?
What will be an ideal response?