Q&A Hero

Q: Under parent company theory, noncontrolling interest is classified on the consolidated balance sheet as ________. Under entity theory, noncontrolling interest is classified on the consolidated balance sheet as ________. A) stockholders' equity; stockholders' equity B) stockholders' equity; liability C) liability; a liability D) liability; stockholders' equity

Q: A basic distinction between the long run and the short run is thatA) if a firm produces no output in the long run, it still incurs a cost.B) the opportunity costs of production are lower in the short run than in the long run. C) in the long run, some inputs are fixed, while in the short run, all inputs are variable.D) in the short run, complete adjustment of all inputs is impossible, while in the long run all inputs can be adjusted.

Q: Explicit costs of an IPO tend to be around ______ of the funds raised. A. 1% B. 7% C. 15% D. 25%

Q: The SEC requires push-down accounting for SEC filings of subsidiaries when the subsidiary has no substantial publicly-held debt or preferred stock outstanding andA) the parent has substantial ownership (5% or greater).B) the parent has substantial ownership (20% or greater).C) the parent has substantial ownership (50% or greater).D) the parent has substantial ownership (90% or greater).

Q: Under firm-commitment underwriting, the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price. A. red herring B. issuing company C. initial stockholder D. underwriter

Q: Limited liability exists whenA) the liability of owners is limited to the value of the shares in the firm they own. B) the liability of owners is limited to the share of the debt they personally took on.C) partners specialize and each partner is responsible for the debts of his or her specialized area.D) bondholders must receive their payments before stockholders can earn any money.

Q: Use the following information to answer the question(s) below.Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1, 2011, at a cost of $400,000. The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings. Book values were equal to fair values except for land and inventory. The book value of Sanders' land was $10,000, and fair value was $22,000. The book value of Sanders' inventory was $30,000, and fair value was $25,000.Assume Paris's inventory account had a book value of $40,000 and a fair value of $44,000 on January 1, 2011. Using the parent company theory, what was the amount reported on the consolidated balance sheet for inventories on January 1, 2011?A) $65,000B) $66,000C) $69,000D) $70,000

Q: The possible combinations of goods that can be purchased with a specific income are called theA) budget constraint. B) indifference map.C) marginal rate of substitution.D) income-consumption curve.

Q: Underwriting is one of the services provided by _____. A. the SEC B. investment bankers C. publicly traded companies D. FDIC

Q: Increases in total utility from the consumption of a good decrease as more is consumed. This statement isA) the law of diminishing marginal utility. B) the law of average utility. C) the consumer optimum. D) false.

Q: The non-European country with the highest average first-day returns in 2014 was _______.A. CanadaB. United StatesC. ChinaD. Jordan

Q: The term "underwriting syndicate" describes _______. A. the issuing firm B. the lead underwriter C. the investment banks that participate in the underwriting D. the private investors that purchase the shares

Q: Julie always purchases the soda with the lowest price. For Julie, the cross price elasticity of demand for brand X and brand Y will beA) equal to 0. B) negative. C) positive.D) impossible to determine without more information.

Q: Privately held firms may have only _______ shareholders. A. 10 B. 99 C. 250 D. 499

Q: The less sensitive quantity demanded is to a change in price, theA) smaller a change in price must be to induce a certain change in quantity demanded.B) greater the absolute price elasticity of demand. C) smaller the absolute price elasticity of demand.D) closer the absolute price elasticity of demand is to one.

Q: Use the following information to answer the question(s) below.Pascoe Corporation paid $450,000 for a 90% interest in Sarabet Corporation on January 1, 2011, when Sarabet's stockholders' equity consisted of $250,000 Common Stock and $50,000 Retained Earnings. The book values and fair values of Sarabet's assets and liabilities were equal when Pascoe acquired its interest.The separate net incomes (excluding investment income) of Pascoe and Sarabet for 2011 were $600,000 and $100,000, respectively. Dividends declared and paid during 2011 were $250,000 for Pascoe and $50,000 for Sarabet. Pascoe uses the entity theory in consolidating its financial statements with those of Sarabet.Pascoe's income from Sarabet under the equity method for 2011 wasA) $72,000.B) $87,500.C) $90,000.D) $100,000.

Q: SIPC ensures investors against failure of a brokerage firm up to a limit of _______. A. $100,000 B. $250,000 C. $500,000 D. $1,000,000

Q: The marginal cost of pollution abatement is the A) additional cost to clean up an additional unit of pollution. B) additional benefit from cleaning up an additional unit of pollution. C) total social costs of pollution clean-up divided by total social benefits. D) total social costs of pollution clean-up divided by the total units of clean -up.

Q: In 2013, NYSE Euronext was acquired by _______. A. DOT B. ICE C. BATS D. It was not acquired.

Q: Attempts to alleviate poverty have included all of the following income -maintenance programs EXCEPTA) Social Security. B) temporary assistance to needy families. C) 401(k) plans. D) food stamps.

Q: The market share held by the "Other" category (which includes dark pools) constitutes roughly ______% of trading volume in NYSE-listed shares. A. 5% B. 10% C. 30% D. 50%

Q: In the above figure, what is the wage rate for the perfectly competitive market?A) W1 B) W2 C) W3 D) W4

Q: In 2014, BATS advertised average latency times of approximately _______. A. 100 microseconds A. 100 microseconds B. 200 microseconds C. 1 second D. 5 seconds

Q: Paroz Corporation acquired a 70% interest in Sandberg Corporation for $900,000 when Sandberg's stockholders' equity consisted of $600,000 of Capital Stock and $600,000 of Retained Earnings. The fair values of Sandberg's net assets were equal to their recorded book values. At the time of acquisition, on Paroz's books, Paroz will record A) goodwill for $60,000 under the parent company theory. B) goodwill for $85,714 under the entity theory. C) investment in Sandberg for $1,285,714 under the entity theory. D) investment in Sandberg for $900,000 under the entity and parent company theories.

Q: An industrial union isA) a union composed of public employees.B) a union composed of workers who are in a specific geographic area.C) a union composed of workers who are employed in a particular industry.D) a union composed of workers who engage in a particular trade or skill.

Q: The commission structure on a stock purchase is $20 plus $.02 per share. If you purchase four round lots of a stock selling for $56, what is your commission? A. $20 B. $22 C. $26 D. $28

Q: Use the following information to answer the question(s) below.Pasfield Corporation acquired a 90% interest in Santini Corporation for $90,000 cash on January 1, 2011. The following information is available for Santini at that time.Book Value Fair Value DifferenceCurrent assets $40,000 $50,000 $10,000Plant assets 60,000 75,000 15,000Liabilities (50,000) (50,000) 0Net assets $50,000 $75,000Under the entity theory, a consolidated balance sheet prepared immediately after the business combination will show noncontrolling interest ofA) $5,000.B) $7,500.C) $9,000.D) $10,000.

Q: Whenever an input makes up a large percentage of a goodʹs final cost, an increase in that inputʹs price willA) affect total cost relatively more. B) not affect total revenues.C) affect only accounting profits. D) cause the firm to shutdown.

Q: You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.) A. 10% B. 20% C. 6.67% D. 15%

Q: The primary antitrust statute in the United States is theA) NLRA of 1935. B) SEC Act of 1933.C) Sherman Antitrust Act of 1890.D) Federal Reserve Act of 1913.

Q: Level 3 NASDAQ subscribers _____. A. are registered market makers B. can post bid and ask prices C. have the fastest execution of trades D. all of these options

Q: Pretax operating incomes of Panitz Corporation and its 80%-owned subsidiary, Salazar Corporation, for the year 2011, are shown below. Panitz and Salazar belong to an affiliated group. Salazar pays total dividends of $35,000 for the year. There are no unamortized book value/fair value differentials relating to Panitz's investment in Salazar. During the year, Panitz sold land to Salazar at a total loss of $15,000 which is included in its pretax operating income. Salazar still holds this land at the end of the year. The marginal corporate tax rate for both corporations is 34%. Panitz Salazar Sales revenue $890,000 $700,000 Loss on sale of land (15,000) Cost of sales (400,000) (250,000) Other expenses (350,000) (350,000) Depreciation expense (50,000) (35,000) Pretax operating income (does not include Salazar investment income) $75,000 $65,000 Required: 1. Determine the separate amounts of income tax expense for Panitz and Salazar as if they had filed separate tax returns. 2. Determine Panitz's net income from Salazar.

Q: Industry X comprises only very few large firms engaged in stiff competition with each other.Industry X can best be described asA) pure competition. B) monopolistic competition. C) pure monopoly. D) oligopoly.

Q: An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return? A. 17.5% B. 19.67% C. 23.83% D. 25.75%

Q: Pretax operating incomes of Pang Corporation and its 70%-owned subsidiary, Sala Corporation, for the year 2011, are shown below. Sala pays total dividends of $60,000 for the year. There are no unamortized book value/fair value differentials relating to Pang's investment in Sala. During the year, Pang sold land to Sala for a gain of $35,000 and Sala holds this land at the end of the year. The marginal corporate tax rate for both corporations is 34%. Pang Sala Sales revenue $900,000 $600,000 Gain on sale of land 35,000 Cost of sales (480,000) (325,000) Other expenses (192,000) (78,000) Pretax operating income (does not include investment income) $263,000 $197,000 Required: 1. Determine the separate amounts of income tax expense for Pang and Sala as if they had filed separate tax returns. 2. Determine Pang's net income from Sala.

Q: How do economies of scale contribute to the development of an oligopoly?A) Economies of scale make it legally difficult for new firms to enter.B) Economies of scale make small -scale producers inefficient.C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry.D) Economies of scale are guaranteed when a patent is granted.

Q: The over-the-counter securities market is a good example of _________. A. an auction market B. a brokered market C. a dealer market D. a direct search market

Q: Stello Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $110, with no dividends in arrears $100,000 Common stock, $1 par value 300,000 Additional paid-in capital 40,000 Retained earnings 160,000 Total stockholders' equity $600,000 On January 1, 2011, Kaprelian Corporation paid $300,000 for a 90% interest in Stello's common stock. On January 1, 2011, the book values of Stello's assets and liabilities were equal to fair values. On January 2, 2011, Kaprelian Corporation paid $100,000 for a 90% interest in Stello's preferred stock. Required: 1. Determine the book value of the common stockholders' equity for Stello Corporation on January 1, 2011. 2. Prepare the journal entry(ies) on January 1, 2011 for Kaprelian Corporation. 3. Prepare the journal entry(ies) on January 2, 2011 for Kaprelian Corporation. 4. For the year ending December 31, 2011, Stello Corporation reported net income of $50,000. Stello Corporation declared and paid dividends of $10,000 to preferred stockholders and $10,000 to common stockholders. Prepare the journal entries for Kaprelian Corporation relating to this information.

Q: The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equalA) $50,000. B) $30,000. C) 15,000. D) zero.

Q: The primary market where new security issues are offered to the public is a good example of _________. A. an auction market B. a brokered market C. a dealer market D. a direct search market

Q: Sandy Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears $100,000 Common stock, $1 par value 200,000 Additional paid-in capital 40,000 Retained earnings 160,000 Total stockholders' equity $500,000 On January 1, 2011, Bombard Corporation paid $200,000 for a 90% interest in Sandy's common stock. On January 1, 2011, the book values of Sandy's assets and liabilities were equal to fair values. On January 2, 2011, Bombard Corporation paid $120,000 for a 90% interest in Sandy's preferred stock. Required: 1. Determine the book value of the common stockholders' equity for Sandy Corporation on January 1, 2011. 2. Prepare the journal entry(ies) on January 1, 2011 for Bombard Corporation. 3. Prepare the journal entry(ies) on January 2, 2011 for Bombard Corporation. 4. For the year ending December 31, 2011, Sandy Corporation reported net income of $50,000. Sandy Corporation declared and paid dividends of $20,000 to preferred stockholders and $10,000 to common stockholders. Prepare the journal entries for Bombard Corporation relating to this information.

Q: If a monopolist produces to a point at which marginal revenue is more than marginal cost thenA) the firm should increase output.B) the firm should reduce output. C) the firm is maximizing profits.D) we do not know if the firm should increase or reduce without more information.

Q: The New York Stock Exchange is a good example of _________. A. an auction market B. a brokered market C. a dealer market D. a direct search market

Q: Paradise Corporation owns 100% of Aldred Corporation, 90% of Balme Corporation, 80% of Calder Corporation, 75% of Dale Corporation, 20% of East Corporation, and 8% of Faber Corporation. Paradise, Aldred, Balme and Calder belong to an affiliated group. All of these corporations are domestic corporations. During 2011, Paradise Corporation reports net income of $1,500,000. This net income includes the full amount of dividends received from Aldred and Faber, but does not include the dividends received from Balme, Calder, Dale, and East Corporations. All investees have paid out all of their net income in the form of dividends. Paradise's share of the various dividend distributions is as follows: From Aldred: $90,000 From Balme: $92,000 From Calder: $88,000 From Dale: $66,000 From East: $50,000 From Faber: $40,000 Required: Calculate the correct amount of taxable income for Paradise Corporation if a consolidated tax return is filed.

Q: Which of the following is NOT correct for a perfectly competitive firm in long -run equilibrium?A) SAC = LAC B) MR = P = AR C) MC = MR > LAC D) LAC = P

Q: Suppose that at the current level of output, price = $10, MC = $4, AVC = $7, and ATC = $11.Which of the following is true?A) The firm should decrease output. B) The firm should shut down.C) The firm should increase output.D) The firm should maintain the current level of output.

Q: Pane Corporation owns 100% of Alder Corporation, 85% of Ball Corporation, 70% of Cake Corporation, 40% of Dash Corporation, and 10% of Eager Corporation. All of these corporations are domestic corporations. Pane, Alder and Ball belong to an affiliated group. Pane's marginal income tax rate is 35%. All investees have paid out all their net income in the form of dividends. During 2011, Pane Corporation received the following cash dividends: From Alder: $180,000 From Ball: $170,000 From Cake: $160,000 From Dash: $100,000 From Eager: $ 60,000 Required: 1. Compute the amount of the dividend income that would be excluded from taxation under the current Internal Revenue Code. 2. Compute Pane's current income tax liability for the dividend income received in 2011.

Q: An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges 7% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $28. The investor's rate of return was ____. A. 17% B. 12% C. 14% D. 19%

Q: Peyton Corporation owns an 80% interest in Sampe Corporation's common stock. Throughout 2011, Sampe had 10,000 shares of common stock outstanding and Peyton had 100,000 shares of common stock outstanding. Sampe's only dilutive security consists of $100,000 face amount of 8% bonds payable. Each $1,000 bond is convertible into 20 shares of Sampe stock. Peyton and Sampe's separate net incomes for the year are $200,000 and $150,000, respectively. Assume a 34% flat income tax rate. Required: Compute the amount of basic and diluted earnings per share for Peyton (consolidated) and Sampe Corporations.

Q: In ________ markets, participants post bid and ask prices at which they are willing to trade, but orders are not automatically executed by computer. ____________ execute trades for people other than themselves, and in _______________ markets a computer matches orders with an existing limit order book and executes the trades automatically. A. electronic; Dealers; brokers B. dealer; Brokers; electronic C. direct search; Brokers; electronic D. brokered; Dealers; direct search

Q: At an output at which MC is greater than ATCA) the ATC curve is downward sloping. B) the ATC curve is upward sloping.C) the AFC curve is upward sloping. D) the AVC curve is downward sloping.

Q: Parker Corporation owns an 80% interest in Sample Corporation's common stock. Throughout 2010, Sample had 10,000 shares of common stock outstanding and Parker had 100,000 shares of common stock outstanding. Sample's only dilutive security consists of $50,000 face amount of 8% bonds payable. Each $1,000 bond is convertible into 20 shares of Sample stock. Parker and Sample's separate incomes for the year are $100,000 and $75,000, respectively. Assume a 34% flat income tax rate. Required: Compute the amount of basic and diluted earnings per share for Parker (Consolidated) and Sample Corporations.

Q: The largest nongovernmental regulator of securities firms in the United States is ________. A. the CFA Institute B. the Public Company Accounting Oversight Board C. the Financial Industry Regulatory Authority D. the Board of Directors of NYSE Euronext

Q: Which of the following would NOT be a short-run decision for the firm? A) Recall workers who were previously laid-off B) Have labor work two hours overtime each day in order to expand output C) Build another wing on the plant in order to add a new assembly line D) Place an order with a supplier for additional raw materials

Q: Pandy Corporation owns a 90% interest in Sakaj Corporation's common stock. Throughout 2010, Sakaj had 20,000 shares of common stock outstanding and Pandy had 50,000 shares of common stock outstanding. Sakaj's only dilutive security consists of 10,000 stock options, with an exercise price of $20 per share. The average price of Sakaj's stock is $50 per share in 2010. The options are exercisable for one share of Sakaj's common stock. Pandy's and Sakaj's separate net incomes for the year are $200,000 and $180,000, respectively. Required: Compute the amount of basic and diluted earnings per share for Pandy (Consolidated) and Sakaj Corporations.

Q: The concept of limited liabilityA) does not apply to a corporation.B) means that the owners of a corporation have liability limited to the value of the shares in the firm.C) means that owners of a firm are subject to double taxation.D) limits the amount of specialization that can occur in a firm.

Q: Which of the following are true concerning short sales of exchange-listed stocks? I. Proceeds from the short sale must be kept on deposit with the broker. II. Short-sellers must post margin with their broker to cover potential losses on the position. III. The short-seller earns interest on any cash deposited with the broker that is used to meet the margin requirement. A. I only B. I and III only C. I and II only D. I, II, and III

Q: Pancino Corporation owns a 90% interest in Sakal Corporation's common stock. Throughout 2010, Sakal had 20,000 shares of common stock outstanding and Pancino had 50,000 shares of common stock outstanding. Sakal's only dilutive security consists of 2,500 stock options, with an exercise price of $20 per share. The average price of Sakal's stock is $50 per share in 2010. The options are exercisable for one share of Sakal's common stock. Pancino's and Sakal's separate net incomes for the year are $100,000 and $80,000, respectively. Required: Compute the amount of basic and diluted earnings per share for Pancino (Consolidated) and Sakal Corporations.

Q: Maintenance requirements for margin accounts are set by ____. A. brokerage firms B. the SEC C. the Federal Reserve System's Board of Governors D. the Supreme Court

Q: The slope of the budget line isA) zero since prices of the goods and income are assumed to be constant.B) negative since to purchase more of one good means that some of the other good must be given up.C) negative because of the marginal rate of substitution. D) positive since prices and income are positive.

Q: Savy Corporation's stockholders' equity on December 31, 2010 was as follows: 8% cumulative preferred stock, $100 par value, callable at $109, with two years of dividends in arrears $100,000 Common stock, $25 par value 700,000 Additional paid-in capital 250,000 Retained earnings 400,000 Total stockholders' equity $1,450,000 On January 1, 2011, Paul Corporation purchased a 70% interest in Savy's common stock for $2,100,000. On this date the book values of Savy's assets and liabilities are equal to their fair values. Required: 1. Determine the book value of the common stockholders' equity for Savy Corporation on January 1, 2011. 2. What is the amount of goodwill reported on the consolidated balance sheet for Paul Corporation and Subsidiary at January 2, 2011? 3. On January 2, 2011, Paul purchased 70% of Savy's preferred stock for $50,000. Prepare the journal entry(ies) for Paul for this purchase on January 2, 2011. 4. Prepare the elimination entry on the consolidating work papers for the Investment in Savy, Preferred Stock and Savy's Preferred Stock on January 2, 2011.

Q: The SIPC was established by the ____. A. Insider Trading Act of 1931 B. Securities Act of 1933 C. Securities Exchange Act of 1934 D. none of these options

Q: Which of the following is NOT consistent with the law of diminishing marginal utility?A) Newspaper vending machines are not as secure as soft drink machines.B) A student selects to eat at an all -you-can-eat restaurant rather than at a restaurant that charges for refills.C) A studentʹs enjoyment of opera increases the more she listens to it.D) A symphony has free throat lozenges in their lobby.

Q: Samford Corporation's stockholders' equity on December 31, 2010 was as follows: 8% cumulative preferred stock, $100 par value, callable at $109, with two years of dividends in arrears $100,000 Common stock, $25 par value 700,000 Additional paid-in capital 250,000 Retained earnings 400,000 Total stockholders' equity $1,450,000 On January 1, 2011, Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000. On this date the book values of Samford's assets and liabilities are equal to their fair values. Required: 1. Determine the book value of the common stockholders' equity for Samford Corporation on January 1, 2011. 2. What is the amount of goodwill reported on the consolidated balance sheet for Panera Corporation and Subsidiary at January 2, 2011? 3. What is the noncontrolling interest that appeared on a consolidated balance sheet for Panera Corporation and Subsidiary on January 2, 2011?

Q: The ____ requires full disclosure of relevant information relating to the issue of new securities. A. Insider Trading Act of 1931 B. Securities Act of 1933 C. Securities Exchange Act of 1934 D. Investment Company Act of 1940

Q: Robert must always have cream in his coffee. For Robert, the cross price elasticity of demand for coffee and cream isA) equal to 0. B) negative. C) positive.D) impossible to determine without more information.

Q: Sally Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears $10,000 Common stock, $1 par value 50,000 Additional paid-in capital 150,000 Retained earnings 160,000 Total stockholders' equity $370,000 On January 1, 2011, Panera Corporation paid $500,000 for a 70% interest in Sally's common stock. On January 1, 2011, the book values of Sally's assets and liabilities were equal to fair values. Required: 1. Determine the book value of the common stockholders' equity for Sally Corporation on January 1, 2011. 2. What is the amount of goodwill reported on the consolidated balance sheet for Panera Corporation and Subsidiary at January 2, 2011? 3. On January 2, 2011, Panera purchased 70% of Sally's preferred stock for $5,000. Prepare the journal entry(ies) for Panera for this purchase on January 2, 2011. 4. Prepare the elimination entry on the consolidating work papers for the Investment in Sally, Preferred Stock and Sally's Preferred Stock on January 2, 2011.

Q: The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which goodʹs quantity demanded is less responsive to a change in price?A) Good X. B) Good Y.C) They are equally responsive. D) Not enough information is given.

Q: Trading on inside information is: I. Prohibited by federal law II. Prohibited by the CFA Institute Standards of Professional Conduct III. Monitored by the SEC A. I and II only B. II and III only C. I and III only D. I, II, and III

Q: Saito Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears $10,000 Common stock, $1 par value 50,000 Additional paid-in capital 150,000 Retained earnings 160,000 Total stockholders' equity $370,000 On January 1, 2011, Panata Corporation paid $300,000 for a 70% interest in Saito's common stock. On January 1, 2011, the book values of Saito's assets and liabilities were equal to fair values. Required: 1. Determine the book value of the common stockholders' equity for Saito Corporation on January 1, 2011. 2. What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary) at January 2, 2011? 3. What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary) on January 2, 2011?

Q: The CFA Institute Standards of Professional Conduct require that members _____. A. place their clients' interests before their own B. disclose conflicts of interest to clients C. inform their employers that they are obligated to comply with the Standards of Professional Conduct D. all of these options

Q: Quantity of Clean Air (%)Marginal Cost ($)Marginal Benefit ($)010,000100,0002525,00050,0005037,50037,5007575,00025,000100Infinite0In the above table, the optimal quantity of clean air isA) 25 percent. B) 50 percent. C) 75 percent. D) 100 percent.

Q: Palomba Corporation allocates consolidated income taxes to its 90%-owned subsidiary using the percentage allocation method. Under this method, consolidated income tax expense will be allocated to a subsidiary A) on the basis of the agreement between the parent and subsidiary. B) on the basis of the subsidiary's pretax income as a percentage of consolidated pretax income. C) on the basis of the income taxes remitted to the IRS. D) 90% to the subsidiary.

Q: All of the following aim to reduce income inequality EXCEPTA) Social Security payments. B) earned income tax credits. C) regressive taxes. D) food stamp programs.

Q: The average depth of the limit order book is _____. A. lower for the large stocks in the S&P 500 Index than for the smaller stocks in the Russell 2000 Index B. higher for the large stocks in the S&P 500 Index than for the smaller stocks in the Russell 2000 Index C. about the same for both the large stocks in the S&P 500 Index and the smaller stocks in the Russell 2000 Index D. unrelated to the sizes of the stocks in the indexes

Q: Palmquist Corporation and its 80%-owned subsidiary, Sadler Corporation, are members of an affiliated group. They do not file consolidated tax returns. Sadler had $3,000,000 of income and paid $1,000,000 dividends in 2010. Palmquist and Sadler had 35% income tax rates. What amount of Sadler's dividends is taxable to Palmquist in 2010? A) $0 B) $ 70,000 C) $160,000 D) $200,000

Q: In the above figure, what is the wage rate the monopsonist will pay?A) W1 B) W2 C) W3 D) W4

Q: If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be found as ________. A. market value of the stock - amount owed on the margin loan B. market value of the stock + amount owed on the margin loan C. market value of the stock margin loan D. margin loan market value of the stock

Q: Palmer Company owns a 25% interest in Sad, Incorporated, a domestic company. Sad had net income of $60,000 and paid dividends of $20,000. Palmer's tax rate is 35%. For simplicity, assume that Sad's undistributed earnings are Palmer's only temporary timing difference. Assume Sad qualifies for the 80% dividend received deduction. Which of the following statements is correct? A) The current tax liability is $700. B) The current tax liability is $1,050. C) Under GAAP, Palmer provides for income taxes on Sad's undistributed earnings with a credit to deferred tax liability of $700. D) Under GAAP, Palmer provides for income taxes on Sad's undistributed earnings with a credit to deferred tax liability of $1,050.

Q: Prior to World War I, the U.S. governmentʹs attitude towards labor unions was one ofA) indifference.B) support. C) hostility.D) support, except when it came to unions of public employees.