On january 1, 20x8, potter corporation acquired 90 percent of shoemaker company's voting stock, at underlying book value. the fair value of the noncontrolling interest was equal to 10 percent of the book value of shoemaker at that date. potter uses the fully adjusted equity method in accounting for its ownership of shoemaker. on december 31, 20x9, the trial balances of the two companies are as follows:
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Let's consider a hypothetical airline, mudlarks airlines. on one of its flights, precious records show that about 15% of people who had tickets for the flights did not take the flight. there are 120 seats on the plane. 1. how many tickets should mudlarks airlines sell for this flight? 2. as an added consideration, suppose that tickets on this flight cost a flat rate of $250. in addition, mudlarks airlines must give any traveler who purchased a seat for the flight, but who cannot travel due to overbooking, a $400 certificate for their trouble. does this change your answer in question one? now, suppose that mudlarks airlines forms a partnership itch another airline, puffin air. their agreement allocates 100 seats on the flight to mudlarks airlines and another 20 seats to puffin air. the 2 airlines sell tickets for the flight independently of each other. 3. assuming the same 15% no show percent for each airline, how many tickets should each sell?
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On january 1, 20x8, potter corporation acquired 90 percent of shoemaker company's voting stock, at u...
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