How might a company obtain a price index in order to apply dollar-value LIFO?
a. Calculate an index based on recent inventory purchases.
b. Use a general price level index published by the government.
c. Use a price index prepared by an industry group.
d. All of the above.
Answer: d. All of the above.
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The risk-based capital requirements for life insurers are based on a formula that considers four types of risk
One risk reflects a range of uncertainties that life insurers face including such things as bad management decisions and guaranty fund assessments. This risk is called A) asset risk. B) insurance risk. C) interest rate risk. D) business risk.
On January 1, 2014, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000. On January 1, 2014, Sally's total stockholders' equity was $300,000
The fair value and book value of Sally's individual assets and liabilities were equal. n January 2, 2014, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On January 2, 2014, Wrobel's total stockholders' equity was $700,000. The fair value and book value of Wrobel's individual assets and liabilities were equal. For the year ending December 31, 2014, the following data is available: Net income Dividends Wrobel Company $50,000 $0 Sally Company $30,000 $0 The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally. The separate net incomes do not include investment income. Required: 1. What is Sally's income from Wrobel for 2014? 2. What is Wrobel's income from Sally for 2014? 3. What is the noncontrolling interest share associated with Sally Company for 2014? 4. Prepare the elimination entry for Sally's Investment in Wrobel Company.