15 ion If a parent company borrows money at an interest rate of six percent from its subsidiary, what effect (if any) will this have on the non-controlling interest? This would have no effect on the non-controlling interest. The subsidiary would book its pro-rata share of any interest revenue. The non-controlling interest balance would be reduced by the amount of the loan. The subsidiary would record any interest revenue as an extraordinary gain.

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: will you please show solution without excel step by step

A: As per the given information: Initial salary is $40,000 Salary rise after first year to $44,200…

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A: Over-trading is a situation where a company does more business in terms of excessive buying and…

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A: Cost accounting is the part of accounting that helps in determining the total cost of production. It…

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A: Home equity refers to the difference in the value of the home and the mortgage balance. In HELs and…

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A: The objective of the question is to identify the correct statement about structured data from the…

Q: pos.

A: This statement is also known as Statement of Profit and Loss or Profit and Loss Account. Income…

Q: What is the purpose of EDI?

A: Electronic data interchange: The expansion of EDI is Electronic Data Interchange and it allows the…

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A: Standards are a set of rules that define the threshold of any activity. In accounting, there are…

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A: Graphical representation:- In this format, nodes and branches are used to visually represent the…

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A: ABC System is a method of costing i.e. Activity Based Costing. This is a costing method that assigns…

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A: A data flow diagram (DFD) refers to a graphical representation of a flow of any information or…

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A: Internal control refers to the process of implementing and exercising the various mechanisms, rules,…

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A: Definition: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What is a proxy statement? What information does it provide?

A: Definition:   Proxy statement: Proxy statement is a statement required for seeking shareholders’…

Q: Formulas are missing. which formulas did you use?  Please clarify

A: The formula used is that of Future value. Future value is based on time value of money concept.…

Q: What formula is being used if not using excel?

A: The concept of the time value of money determines that the worth of money gets depreciated over a…

Q: Explain an example of faithful representation.

A:

Q: Define management by exception.

A: Management by exceptions: Management by exceptions determines that the managers should not focus if…

Q: How does the Representational faithfulness is enhanced if information is free from error?

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

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A: Journal entry is the entry which is made at the date on which the transaction which relates to the…

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A: The MPTBs are viewed as hybrid securities. Such bonds have qualities of mortgage backed bond (MBB)…

Q: Define Double-entry system.

A: Double entry system: Double entry system is a way of accounting or bookkeeping which implies that…

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A: A mathematical model that describes the link between a security's expected return and risk is…

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A: Here, Required Amount (FV) is P2,500,000 Time Period (n) is 40 years Interest Rate (r) is 9%…

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A: 1) when market interest rates decreases  when market interest rates decreases bond price will…

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A: Depreciation:- Depreciation is allocating the value of the fixed (long lived) assets over the period…

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A: Double entry: Double-entry refers to the double effect of each financial transaction that occurs.…

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A: Definition: Database: A database can be defined as the collection of data in an organized manner…

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A: Accounting Information System: The system which helps to gather, store and process the accounting…

Q: What is canonical cover in DBMS?

A: DBMS programming essentially works as an interface between the end-client and the data set, all the…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.