Which of the following is a characteristic of distributive bargaining?
A) win-win solution
B) long-term focus
C) good interpersonal relationships
D) opposed interests
E) high information sharing
D
Explanation: D) In distributive bargaining, the interests of the parties are opposed. Win-win solution, long-term focus, good interpersonal relationships, and high information sharing are characteristics of integrative bargaining.
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On December 31, 2012, Twisted Pretzel was told by an appraiser that its land, which cost $100,000, was worth $120,000. How should Twisted Pretzel show this information on its financial statements prepared under U.S. GAAP?
A) Report a gain of $20,000 on its income statement. B) Report land at $100,000 on its income statement. C) Report land at $120,000 on its income statement. D) Continue showing the land at its cost of $100,000.