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Gelneren [198K]
2 years ago
13

Hypothetically, your MNE is the largest foreign investor in Vietnam, where dissidents and religious leaders are reportedly being

persecuted. As the country manager there, you understand that the MNE is being pressured by NGOs to help the oppressed groups in Vietnam. But you also understand that the host government would be upset if your firm were found to engage in local political activities deemed inappropriate. These alleged activities, which you personally find distasteful, are not directly related to operations. How would you proceed
Business
1 answer:
Oksana_A [137]2 years ago
6 0

Answer:

69

Explanation:

i think its 69

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"Ayres Services acquired an asset for $80 million in 2021." The asset is depreciated for financial reporting purposes over four
Greeley [361]

Answer:

a. The cumulative temporary book-tax difference for the depreciable asset are as follows:

December 31, 2021 = $60 million

December 31, 2022 = $40 million

December 31, 2023 = $20 million

December 31, 2024 = $0

b. The balance to be reported in the deferred tax liability account are as follows.

December 31, 2021 = $15 million

December 31, 2022 = $10 million

December 31, 2023 = $5 million

December 31, 2024 = $0

Explanation:

Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.

In the attached excel file, the following formula are used:

Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)

Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate

Download xlsx
3 0
2 years ago
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same
Arte-miy333 [17]

Answer:

                                                            Fatboy         Screamer          Total

Direct labor                                 .   $ 2,000,000   $ 4,000,000   $ 6,000,000

Indirect materials                        .       $600,000    $1,200,000    $1,800,000

Other overhead                          .    $1,400,000   $2,800,000    $4,200,000

Materials cost                              .    $4,000,000  $12,000,000   $16,000,000                                                          

Total cost                                     .   $8,000,000 $20,000,000 $28,000,000

Number of units                           .       2,000              4,000               6,000

Unit cost                                       .      $4,000            $5,000            $4,667

Explanation:

Assign the Material Cost to the Products appropriately. The conversion costs musts be allocated based on the number of units assembled. Conversion costs is the sum of Direct Labor and Manufacturing Overheads (Indirect Costs).

7 0
1 year ago
Candy purchases a new guitar costing $5,500. She put down 15% and finance the rest for 3 years through the store. The store will
Umnica [9.8K]

Answer:

c. $455.75

Explanation:

The computation of the  quarterly payments is shown below:

= Balance amount ÷ PVIFA  factor for 2.5% at 12 years

where,

Balance amount is

= $5,500 - $5,500 × 15%

= $5,500 - $825

= $4,675

And the PVIFA  factor for 2.5% at 12 years is 10.2578

Refer to the PVIFA table

So, the quarterly payments is

= $4,675 ÷  10.2578

= $455.75

In the case of quarterly payments, the rate is one fourth and time period would be 4 times

5 0
2 years ago
Gary Radio Corporation is a subsidiary of Salem Companies. Gary makes car radios that it sells to retail outlets. It purchases s
natita [175]

Answer:

Salem Companies

a. I recommend a transfer price of $56 per unit (in view of the excess capacity).

b. The intercompany sales at $56 per unit will increase Hyden's return on investment because it will use excess capacity to produce the required units while still selling to outside customers at $60 per unit.  With regard to Gary's return on investment, there will be no change as this is the same price it buys from outside suppliers.  However, if the price were to be $60 per unit, the return on investment will reduce while skyrocketing Hyden's.

c.  Hyden can still sell some of the 200,000 units that it currently sells to unrelated companies at $56 if the outside demand is less than 200,000 units or if Gary will buy at $60 per unit.

Explanation:

a) Data and Calculations:

Purchase price from outside suppliers = $56 each

Production units of Hyden = 200,000

Capacity of Hyden = 285,714

Unit cost at present volume of activity = $48

Variable cost = $32

Fixed cost = $16

Transfer price by Hyden at $60:

Profit per unit = $12 ($60 - $48)

Return on investment = 25% ($12/$48 * 100)

Transfer price at $56 using excess capacity:

Incremental profit per unit = $24 ($56 - $32)

Incremental return on investment = 75% ($24/$32 * 100)

Transfer price at $56 producing below capacity:

Profit per unit = $8 ($56 - $48)

Return on investment = 16.7% ($8/$48 * 100)

4 0
2 years ago
Between projects A and B, project A will be considered a superior financial undertaking if it has:
Mashutka [201]

Answer:

A. a shorter payback period than project B.

Explanation:

Payback period is the period when the investment value is fully recovered through the business.

Hence the shorter the payback period, the better it is because this means that the return on investment in earned at a greater pace.

Hope this clear things up.

Good luck.

8 0
2 years ago
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