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Questions
Q:
Samuel Gompers served as the first leader of theA) Knights of Labor. B) American Federation of Labor. C) Congress of Industrial Organizations. D) United Steel Workers.
Q:
Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled?A. $39.75B. $40.25C. $40.375D. $40.25 or less
Q:
On January 1, 2011, Klode Corporation acquired an 80% interest in Savy Company for $400,000 when Savy's stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.On January 1, 2011, Savy purchased a 10% interest in Klode for $50,000 when Klode's total stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.The following data was available for the year ending December 31, 2011:Klode Company Savy CompanyNet income $70,000 $50,000Dividends 0 0Use the conventional approach to account for the mutually-held stock. Assume there were no book value/fair value differentials for each investment. The separate net incomes do not include investment income.Required:1. Prepare the journal entry for Klode on January 1, 2011.2. Prepare the journal entry for Savy on January 1, 2011.3. Prepare the journal entry to record the constructive retirement of 10% of Klode's outstanding stock due to Savy's purchase of Klode's stock.4. Determine the incomes of Klode and Savy on a consolidated basis with mutual income for 2011 using simultaneous equations.5. What is controlling interest share of consolidated net income and noncontrolling interest shares for 2011?
Q:
If labor is 80 percent of total costs in industry A and 20 percent in industry B, then other things equal, we would expect the elasticity of demand for labor to beA) greater in industry A than in industry B. B) greater in industry B than in industry A. C) the same in both industries.D) uncertain since no general relationship exists between cost shares and elasticities.
Q:
You purchased XYZ stock at $50 per share. The stock is currently selling at $65. Your gains could be protected by placing a _________.
A. limit buy order
B. limit sell order
C. market order
D. stop-loss order
Q:
On January 1, 2011, Peabody Corporation acquired a 90% interest in Salisbury Company for $270,000 when Salisbury's stockholders' equity was $300,000; with Common stock $200,000 and Retained earnings $100,000.On January 1, 2011, Salisbury purchased a 10% interest in Peabody for $70,000 when Peabody's total stockholders' equity was $700,000; with Common stock $500,000 and Retained earnings $200,000.The following data was available for the year ending December 31, 2011:Peabody Company Salisbury CompanyNet income $50,000 $30,000Dividends 0 0Use the conventional approach to account for the mutually-held stock. Assume there were no book value/fair value differentials for each investment. The separate net incomes do not include investment income.Required:1.Prepare the journal entry for Peabody on January 1, 2011.2. Prepare the journal entry for Salisbury on January 1, 2011.3. Prepare the journal entry to record the constructive retirement of 10% of Peabody's outstanding stock due to Salisbury's purchase of Peabody's stock.4. Determine the incomes of Peabody and Salisbury on a consolidated basis with mutual income for 2011 using simultaneous equations.5. What is controlling interest share of consolidated net income and noncontrolling interest shares for 2011?
Q:
A major shortcoming of the Sherman Act was thatA) when it was passed, there were no violations, so the Supreme Court ruled it unnecessary.B) it failed to explicitly state which specific activities were illegal. C) violators of the Act were forced out of business.D) it was not enforced by the courts.
Q:
Which of the following is (are) true about dark pools?
I. They allow anonymity in trading.
II. They often involve large blocks of stocks.
III. Trades made through them might not be reported.
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III
Q:
Strategic dependence is found inA) monopoly markets. B) oligopolistic markets.C) monopolistic competitive markets. D) perfect competitive markets.
Q:
On January 1, 2011, Singh Company acquired an 80 percent interest in Gonzalez Company for $300,000. On January 1, 2011, Gonzalez's total stockholders' equity was $375,000. The fair value and book value of Gonzalez's individual assets and liabilities were equal.On January 2, 2011, Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000. On January 2, 2011, Singh's total stockholders' equity was $500,000. The fair value and book value of Singh's individual assets and liabilities were equal.For the year ending December 31, 2011, the following data is available:Net income DividendsSingh Company $40,000 $0Gonzalez Company $10,000 $0The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez. The separate net incomes do not include investment income. A partial consolidating worksheet is below.Required:Prepare the elimination entries for the year ending December 31, 2011.Do not enter them onto the worksheet. Instead, list them below.
Q:
The cost of buying and selling a stock includes:
I. Broker's commissions
II. Dealer's bid-asked spread
III. Price concessions that investors may be forced to make
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III
Q:
If the United Statesʹ largest bakery buys an agricultural firm that specializes in growing wheat, we would have an example ofA) a horizontal merger. B) a vertical merger.C) a monopoly. D) excessive product differentiation.
Q:
On January 1, 2011, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000. On January 1, 2011, Sally's total stockholders' equity was $300,000. The fair value and book value of Sally's individual assets and liabilities were equal.On January 2, 2011, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On January 2, 2011, 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, 2011, the following data is available:Net income DividendsWrobel Company $50,000 $0Sally Company $30,000 $0The 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.A partial working paper is available for the year ending December 31, 2011.Required:Prepare the elimination entries for the year ending December 31, 2011.Do not enter them onto the worksheet. Instead, list them below.
Q:
The NYSE has lost market share to ECNs in recent years. Part of the NYSE's response to the growth of ECNs has been to:
I. Purchase Archipelago, a major ECN, and rename it NYSE Arca II. Enable automatic trade execution through its new Market Center
III. Impose a tighter limit on bid-ask spreads
A. I only
B. II and III only
C. I and II only
D. I, II, and III
Q:
In the above figure, total cost for this profit-maximizing monopolistically competitive firm isA) $91,000. B) $50,000. C) $70,000. D) $72,000.
Q:
The bid-ask spread exists because of _______________.
A. market inefficiencies
B. discontinuities in the markets
C. the need for dealers to cover expenses and make a profit
D. lack of trading in thin markets
Q:
If a monopolist produces to a point at which marginal revenue is greater than marginal cost thenA) profits are being maximized.B) profits will always be negative.C) the incremental cost of producing the last unit exceeds the incremental revenue.D) the incremental cost of producing the last unit is less than the incremental revenue.
Q:
The difference between the price at which a dealer is willing to buy and the price at which a dealer is willing to sell is called the _________.
A. market spread
B. bid-ask spread
C. bid-ask gap
D. market variation
Q:
In the long run, a perfect competitorA) earns positive profits but will not make losses. B) earns positive economic profits.C) earns zero economic profits.D) produces at its shutdown point.
Q:
The _________ price is the price at which a dealer is willing to sell a security.
A. bid
B. ask
C. clearing
D. settlement
Q:
Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Abrams Corporation. The separate net incomes (excluding investment income) of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:Calculate the controlling interest share of consolidated net income and the noncontrolling interest shares for Padhy Corporation and its subsidiaries. Use the conventional method for your solution.
Q:
When demand is perfectly elastic, marginal revenue isA) zero. B) equal to price. C) declining. D) increasing.
Q:
Separate earnings and investment percentages for three affiliates for 2011 are as follows:Separate Percentage Interest Percentage InterestEarnings in Acres in BainPalace Company $450,000 80%Acres Inc 200,000 70%Bain Corporation 160,000 10%Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.Required:Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.
Q:
Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge Corporation, and Badge Corporation owns 5% of Achan Corporation. The separate net incomes (excluding investment income) of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:Calculate revised net incomes for Paine, Achan, and Badge by using the conventional method.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.
Q:
The distance between the TC and the TVC curveA) is constant. B) decreases as output increases.C) increases as output increases. D) is the MC curve.
Q:
Approximately __________ of trades involving shares issued by firms listed on the New York Stock Exchange actually take place on the New York Stock Exchange.
A. 50%
B. 25%
C. 60%
D. 75%
Q:
The NYSE Hybrid Market allows _____.
A. individuals to send orders directly to a specialist
B. individuals to send orders directly to an electronic system
C. brokers to send orders directly to a specialist
D. brokers to send orders either to an electronic system or to a specialist
Q:
Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:1.Calculate revised net incomes for Paco, Aber, and Back by using the conventional method.2.Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.
Q:
Which of the following is a short-run decision for a firm?
A) Downsizing the firmʹs manufacturing plant
B) Expanding the firmʹs distribution network of long -haul freight trucks and smaller delivery trucks.
C) Firing workers
D) Investing in a new addition to the firmʹs manufacturing plant
Q:
Corporations are responsible for approximately what percentage of total business revenues?A) 19 percent B) 50 percent C) 72 percent D) 83 percent
Q:
The fully automated trade-execution system installed on the NYSE is called _____.
A. FAX
B. Direct +
C. NASDAQ
D. SUPERDOT
Q:
On January 1, 2011 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2011 are as follows:SeparateEarnings (Loss) DividendsPaki Company $400,000 $150,000Adam Inc (50,000) 90,000Baird Company 100,000 35,000Required:Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2011.
Q:
The __________ system enables exchange members to send orders directly to a specialist over computer lines.
A. FAX
B. Direct Plus
C. NASDAQ
D. SUPERDOT
Q:
Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation. The separate net incomes (excluding investment income) of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000, respectively. All of the investments were made at times when the investee's book values were equal to their fair values. There were no cost/book value differentials for each investment.Required:Determine the controlling interest share of consolidated net income and noncontrolling interest shares for Packer Corporation and Subsidiaries for the current year.
Q:
Suppose that indifference curve I1 lies to the right of indifference curve I2. We can conclude thatA) some, but not all, points on indifference curve I1 will correspond to higher utility than points along indifference curve I2.B) some, but not all, points on indifference curve I1 will correspond to lower utility than points along indifference curve I2.C) all points along indifference curve I 1 will correspond to higher utility than points along indifference curve I2.D) all points along indifference curve I 1 will correspond to lower utility than points along indifference curve I2.
Q:
The inside quotes on a limit order book can be found ______.
A. at the top of the list
B. at the bottom of the list
C. by taking the averages of the bid and ask prices on the list
D. only by direct contact with the specialist who maintains the book
Q:
Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair value/book value differentials associated with each investment. Separate net incomes (excluding investment income) of the affiliated companies for 2011 are:Paik: $600,000 which includes $60,000 unrealized losses on inventory items sold to BenAcdol: $360,000Ben: $340,000 which includes $100,000 unrealized profit on land sold to AcdolRequired:Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2011.
Q:
QuantityPer WeekTotal UtilityAmyRobertDavidMichelle0000015.01006006029.91901200130314.72701800220419.43402400310524.04003000425628.54503600575732.94904200900837.252048001275941.451054001770Refer to the above table. The one who likes the good the most isA) David.B) Michelle.C) Robert.D) uncertain since we cannot compare utility across people.
Q:
The ______________ is the most important dealer market in the United States, and the ______________ is the most important auction market.
A. NYSE; NASDAQ
B. NASDAQ; NYSE
C. CME; OTC
D. AMEX; NYSE
Q:
When two goods are complements,A) the demands for both goods will be elastic. B) cross price elasticity of demand will be 0.C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.
Q:
Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2010 for $700,000 when Abdoo's stockholders' equity consisted of $600,000 of Capital Stock and $200,000 of Retained Earnings.Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2010 for $180,000 when Bach had Capital Stock of $200,000 and Retained Earnings of $50,000. On January 1, 2011, Abdoo acquired a 70% interest in Cabo Corporation for $270,000 when Cabo had Capital Stock of $250,000 and Retained Earnings of $100,000.No change in outstanding stock of any of the affiliated companies has occurred since the investments were made. All cost-book value differentials are goodwill. There are no fair value/book value differentials. The stockholders' equity section of the separate balance sheets of Abdoo, Bach, and Cabo at December 31, 2011 are as follows:Abdoo Bach CaboCapital Stock $600,000 $200,000 $250,000Retained Earnings 280,000 140,000 130,000Total stockholders' equity $880,000 $340,000 $380,000Required:1.Compute the amount at which goodwill should be shown in the consolidated balance sheet of Pacini Corporation and Subsidiaries at December 31, 2011.2.Pacini and Abdoo have applied the equity method correctly. Determine the balances of the three investment accounts at December 31, 2011.
Q:
In a __________ underwriting arrangement, the underwriter assumes the full risk that shares may not be sold to the public at the stipulated offering price.
A. best-efforts
B. firm-commitment
C. private placement
D. none of these options
Q:
Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2011 are:Paice $300,000Accardi 160,000Badger 120,000Required:Calculate controlling interest share of consolidated net income and noncontrolling interest shares for Paice Corporation and Subsidiaries for 2011.
Q:
Absolute price elasticities are calculated for four commodities, and the values are: 0.009; 1.0; 3.3; and 4.1. Which indicates the most price -responsive situation?A) 0.009 B) 1.0 C) 3.3 D) 4.1
Q:
Specialists try to maintain a narrow bid-ask spread because:
I. If the spread is too large, they will not participate in as many trades, losing commission income.
II. The exchange requires specialists to maintain price continuity.
III. Specialists are nonprofit entities designed to facilitate market transactions rather than make a profit.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
Q:
On January 1, 2012, Pauline Company acquired 90% of Stephen Company at a cost of $90,000. On January 1, 2012, Stephen Company acquired 10% of Pauline Company at a cost of $10,000.On January 1, 2012, the following data is available:Stephen Company Pauline CompanyCommon Stock $50,000 Common Stock $50,000Retained Earnings $50,000 Retained Earnings $50,000Assets fair value $100,000 Assets fair value $100,000Assets book value $100,000 Assets book value $100,000Liabilities $0 Liabilities $0At December 31, 2012, the following data is available:January 1, 2012 December 31, 2012On Pauline Books:Investment in Stephen $90,000 $105,000On Stephen Books:Investment in Pauline $10,000 $10,000Assuming the treasury stock method is used, what elimination entry is needed for the Investment in Pauline at December 31, 2012?A)Retained earnings5,000Common stock5,000Investment in Pauline10,000B)Investment in Stephen10,000Investment in Pauline10,000C)Income from Pauline10,000Investment in Pauline10,000D)Treasury stock10,000Investment in Pauline10,000
Q:
Quantity of Clean Air (%)Marginal Cost ($)Marginal Benefit ($)010,000100,0002525,00050,0005037,50037,5007575,00025,000100Infinite0The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 25 percent,A) the quantity of polluted air is 25 percent.B) the marginal benefit of clean air exceeds the marginal cost.C) the marginal benefit of clean air is less than the marginal cost.D) the quantity of clean air is optimal.
Q:
According to multiple studies by Ritter, initial public offerings tend to exhibit __________ performance initially and __________
performance over the long term.
A. bad; good
B. bad; bad
C. good; good
D. good; bad
Q:
Raymond Company owns 90% of Rachel Company. Rachel Company owns 10% of Raymond Company. The treasury stock method is used. On the books of Rachel Company, we maintain the Investment in Raymond using the ________ method. The ending balance in Investment in Raymond is ________ stockholders' equity in the consolidated balance sheet.A) equity; deducted fromB) cost; deducted fromC) treasury stock; deducted fromD) conventional; added to
Q:
The federal government began officially measuring poverty in theA) 1860s. B) 1900s. C) 1930s. D) 1960s.
Q:
What would be the profit or loss per share of stock to an investor who bought an October expiration Apple call option with an exercise price of $130 if Apple closed on the expiration date at $120? Assume the option premium was $3.00.A. $0B. $3.00 gainC. $3.00 lossD. $7.00 gain
Q:
When mutually-held stock involves subsidiaries holding the stock of each other, the ________ method is not used.A) equityB) costC) conventionalD) treasury stock
Q:
At any quantity, the marginal factor cost is alwaysA) parallel to the marginal revenue product.B) below the labor supply curve. C) above the labor supply curve. D) above the labor demand curve.
Q:
Which of the following reforms were not included in 2014 regulations regarding money market funds?
A. Institutional funds will "float" the prices of their shares.
B. Funds can limit redemptions or impose a 2% fee if assets fall by more than 30%.
C. increased disclosure of assets' values and liquidity
D. All of the options were included.
Q:
The Knights of Labor wasA) a craft union that tried to restrict immigration into the United States.B) an organization of skilled labor that tried to increase technical training after the German model.C) an organization of both unskilled and skilled workers that pushed for an eight -hour workday and equal pay for men and women.D) an industrial union composed of military personnel that tried to improve military life.
Q:
Use the following information to answer the question(s) below.Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2011 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.Symbols used:P = Income of Paiva on a consolidated basisA = Income of Ackroyd on a consolidated basisB = Income of Bailey on a consolidated basisBailey's noncontrolling interest share for 2011 isA) $7,609.B) $8,044.C) $15,652.D) $23,696.
Q:
Several large banks manipulated the reported rates on which key money market rate?
A. federal funds rate
B. LIBOR
C. bankers' acceptances
D. brokers' calls rate
Q:
The market demand for labor will beA) insensitive to the wage rate in the short run.B) downward sloping.C) the inverse of the market demand for output.D) perfectly inelastic.
Q:
LIBOR is a key reference rate in the money markets. Many ______ of dollars of loans and derivative assets are tied to it.
A. thousands
B. millions
C. billions
D. trillions
Q:
The U.S. Justice Department prosecuted Microsoft under the terms of
A) the Sherman Act.
B) the Kefauver amendment.
C) the 1933 amendment to the Federal Trade Commission Act.
D) none of the above.
Q:
The brokers' call rate represents
A. the rate the broker charges an investor on a margin account.
B. the rate the broker pays its bank on borrowed funds.
C. the return earned by the broker on a margin account.
D. the return earned by the investor on a margin account .
Q:
Use the following information to answer the question(s) below.Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.The net income reported for Pahm Corporation for the current year isA) $504,800.B) $516,800.C) $545,200.D) $557,200.
Q:
Game theory is used to explain the pricing behavior ofA) monopolies. B) perfect competition. C) monopolistic competition. D) oligopolies.
Q:
Which of the following mortgage scenarios will benefit the homeowner the most?
A. adjustable rate mortgage when interest rate increases.
B. fixed rate mortgage when interest rates falls.
C. fixed rate mortgage when interest rate rises.
D. None of these options, as the banker's interest will always be protected.
Q:
The joining of firms that are producing or selling a similar product isA) a conglomerate merger. B) a horizontal merger.C) a vertical merger. D) always an illegal merger.
Q:
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the 1-day rate of return on the index?
A. 5.78%
B. 4.35%
C. 6.16%
D. 7.42%
Q:
In the above figure, total revenue for this profit-maximizing monopolistically competitive firm isA) $50,000. B) $91,000. C) $96,000. D) $100,000.
Q:
A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58 today, what is the new index value?
A. 960
B. 970
C. 975
D. 985
Q:
If a monopolist produces to a point at which marginal revenue is less than marginal cost thenA) profits are being maximized.B) profits will always be negative.C) the incremental cost of producing the last unit exceeds the incremental revenue.D) the incremental cost of producing the last unit is less than the incremental revenue.
Q:
The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split 2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index?
A. 5.00
B. 4.85
C. 4.50
D. 4.75
Q:
Use the following information to answer the question(s) below.Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.The amount of noncontrolling interest share for the current year isA) $69,000.B) $85,000.C) $95,000.D) $99,000.
Q:
In the above figure, the long -run equilibrium price and output areA) $10 and 10. B) $10 and 12. C) $7 and 8. D) $8 and 10.
Q:
A tax free municipal bond provides a yield of 2.34%. What is the equivalent taxable yield on the bond given a 28% tax bracket?
A. 2.34%
B. 2.68%
C. 3.25%
D. 4.92%
Q:
For a firm in a perfectly competitive industry, which of the following is TRUE?A) MR = P B) MR < P C) AVC = ATC D) MR > P
Q:
An index computed from a simple average of returns is a/an _____.
A. equal weighted index
B. value weighted index
C. price weighted index
D. share weighted index
Q:
Paglia Corporation owns 80% of Aburn Corporation and has separate net income of $200,000 for 2010. Aburn Corporation has separate net income of $100,000 and owns 70% of the outstanding stock of Badley Corporation. Badley Corporation has separate net income of $80,000. (Separate net incomes exclude investment income.) The cost of each investment was equal to book value and fair value. The controlling interest share of consolidated net income for 2010 isA) $324,800.B) $328,800.C) $344,800.D) $344,800.
Q:
Using the above table, the TVC, the TC, and the MC when output is 4 units areA) $67, $72, and $22, respectively. B) $16.75, $21.75, and $22, respectively. C) $16.75, $21.75, and $30, respectively. D) $67, $62, and $22, respectively.
Q:
Pablo Corporation acquired 60% of Abagia Corporation on January 1, 2010, at a cost of $20,000 in excess of book value. Also, on July 1, 2010, Pablo acquired 60% of Babin Corporation at book value. On January 1, 2011, Abagia acquired a 20% interest in Babin at a cost of $10,000 in excess of book value. The excess purchase costs paid by Pablo and Abagia were attributed to goodwill.On July 1, 2011, Pablo sold land with a book value of $20,000 to Abagia for $40,000. The $20,000 unrealized gain is included in Pablo's separate income. Separate net incomes for the affiliated companies (excluding investment income) for 2011 are:Pablo $250,000Abagia 70,000Babin 100,000Controlling interest share of consolidated net income for 2011 isA) $304,000.B) $324,000.C) $344,000.D) $364,000.
Q:
Which of the following is TRUE about the long run?A) All resources are variable. B) All resources are fixed. C) At least one resource is fixed. D) None of the above.
Q:
What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%?
A. 6.48%
B. 7.25%
C. 8.02%
D. 9%