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NEW QUESTION: 1
RS purchased an asset on 1 May 20X1 for $200,000, exclusive of import duties of $25,000.
The asset was sold on 1 December 20X3 for $450,000, incurring costs to sell of $15,000.
RS is resident in Country Y where indexation is allowable from the date of purchase to the date of sale.
The indexation factor increased by 40% in the period 1 May 20X1 to 1 December 20X3.
Capital gains are taxed at 25%.
What is the capital tax due from RS on disposal of the asset?
A. $120,000
B. $30,000
C. $28,500
D. $38,750
Answer: B

NEW QUESTION: 2
Bryan Stephenson is an equity analyst and is developing a research report on Iberia Corporation at the request of his supervisor. Iberia is a conglomerate entity with significant corporate holdings in various industries. Specifically, Stephenson is interested in the effects of Iberia's investments on its financial performance and has decided to focus on two investments: Midland Incorporated and Odessa Company.
Midland Incorporated
On December 31, 2007, Iberia purchased 5 million common shares of Midland Incorporated for €80 million. Midland has a total of 12.5 million common shares outstanding. The market value of Iberia's investment in Midland was €89 million at the end of 2008 and €85 million at the end of 2009. For the year ended 2008, Midland reported net income of €30 million and paid dividends of €10 million. For the year ended 2009, Midland reported a loss of €5 million and paid dividends of €4 million.
During 2010, Midland sold goods to Iberia and reported 20% gross profit from the sale. Iberia sold all of the goods to a third party in 2010.
Odessa Company
On January 2, 2009, Iberia purchased 1 million common shares of Odessa Company as a long-term investment. The purchase price was €20 per share and on December 31, 2009, the market price of Odessa was €17 per share. The decline in value was considered temporary. For the year ended 2009, Odessa reported net income of €750 million and paid a dividend of €3 per share. Iberia considers its investment in Odessa as an investment in financial assets.
In addition, Iberia has a number of foreign investments, so Stephenson's supervisor has asked him to draft a report on accounting methods and ratio analysis. The following are statements from Stephenson's research report.
Statement 1: Under U.S. GAAP, firms are required to use proportionate consolidation to account for joint ventures.
Statement 2: In general, if the parent's consolidated net income is positive, the equity method reports a higher net profit margin than the acquisition method.
Is Stephenson's statement regarding the effect on profit margin correct?
A. No. Net profit margin will be the same using either the equity method or the acquisition method.
B. Yes.
C. No. Net profit margin will be lower using the equity method.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
In a profitable year, net profit margin (net income/sales) will be higher under the equity method because sales are lower under the equity method. Acquisition includes the sales figures for both the parent and subsidiary while the equity method only includes the sales figure for the parent company. Net income is the same under both methods. Therefore, the statement is correct. (Study Session 5, LOS 21.c)

NEW QUESTION: 3
You are preparing to activate the Agent Desktop Displays (ADD) tool in the call center.
Which protocol is a prerequisite for ADD in the Avaya Aura Contact Center (AACC) environment?
A. Multicast from Contact Center Manager Administration (CCMA)
B. RSM Compression (Real-Time Statistical Multicast) option that is enabled from the
Contact Center ManagerServer (CCMS)
C. Multicast or unicast communication from the CCMS to Contact Center Manager
Administration (CCMA)
D. Unicast communication from the CCMS to the client PCs
Answer: B