Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Target Co is a wholly owned subsidiary of MegaCorp Inc. MegaCorp supplies a number of services to Target. Target sells some of its products to other MegaCorp subsidiaries. Target also buys products from other MegaCorp subsidiaries that are used as inputs in producing Target's products. Which of the following adjustments should the acquirer make to Target's financial statements before valuing the firm?
A. Deduct the actual cost of services required by Target that are being supplied by the parent without charge from target’s cost of sales.
B. Deduct the difference between the cost of products purchased from other MegaCorp subsidiaries at below market prices and the actual market prices for such products from Target’s cost of sales.
C. Deduct the difference between the cost of products purchased from other MegaCorp subsidiaries at above market prices and the actual cost of such products if purchased from other sources from Target’s cost of sales
D. A and B only.
E. None of the above.

Sagot :

77saseabrooks

Answer:

A

Explanation:

nilagause21

Answer:

Explanation:

 Target is a wholly owned subsidiary of MegaCorp Inc. MegaCorp supplies a number of services to target.

Target sells some of its products to other MegaCorp subsidiaries. Target also buys products from other MegaCorp subsidiaries that are used as inputs in producing Target’s products. Which of the following adjustments should the acquirer make to Target’s financial statements before valuing the firm?

Deduct the actual cost of services required by Target that are being supplied by the parent without

         charge from target’s cost of sales.

Deduct the difference between the cost of products purchased from other MegaCorp subsidiaries at   below market prices and the actual market prices for such products from Target’s cost of sales.

Deduct the difference between the cost of products purchased from other MegaCorp subsidiaries at above market prices and the actual cost of such products if purchased from other sources from Target’s cost of sales

A and B only.

None of the above.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.