Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Gage Corporation has two operating divisions in a semi autonomous organizational structure. Adams Division, located in the United States, produces a specialized electrical component that is an input to Bute Division, located in the south of England. Adams uses idle capacity to produce the component, which has a domestic market price of $36. Its variable costs are $15 per unit. Gage's U.S. tax rate is 40 percent of income. In addition to the transfer price for each component received from Adams, Bute pays a $9 per unit shipping fee. The component becomes a part of its assembled product, which costs an addition $6 to produce and sells for an equivalent of $69. Bute could purchase the component from a Manchester (England) supplier for $30 per unit. Gage's English tax rate is 70 percent of income. Assume that English tax laws permit transferring at either variable cost or market price. Required: A. What transfer price is economically optimal for Gage Corporation? Show computations. B. Is it ethical to choose a transfer price for tax purposes that is different from the transfer price used to evaluate a business unit's performance? C. Suppose Gage had a third operating division, Case, in Singapore, where the tax rate is below that of the United States. Would it be ethical for Gage to use different transfer prices for transactions between Adams and Bute and between Adams and Case?
prepare a memo to the chief accountant that includes the computations needed to determine primary and diluted earnings per share
Record issuance of the bonds payable on December 31, 20X6, the semiannual interest payment on June 30, 20X7, and the payment on December 31, 20X7.
Evaluate the amount to be reported as the cost of the land
If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, illustrate what are the expected cash receipts for March?
Using the equation method: Illustrate what is the break-even point in units and in sales dollars?
A year-end physical inventory at retail prices yields a total inventory of $78,550. Prepare a calculation Showing the company's loss from shrinkage at cost and at retail.
Find the Straight-line depriciation method and The Double-declining depriciation method
Money from these accounts could be mixed or further divided and sent to other accounts or individuals, who, in turn, would do the same, until several checks for $1000 or less eventually arrive at party headquarters.
illustrate what adjusting journal entry must be made to recognize bad debts expense on June 30, 2012?
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The subsequent divisional information is presented for
Multiple choice question based on cash flow statement - Cash flows from financing activities for 2008 total
Does it matter what is generating the cash flow? What if they collect receivables quickly and sit on accounts payable as long as possible?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd