Suppose Ryan acquired land sometime in the past at a cost of $2,000,000. During the current year, it sells the land to Patrick (subsidiary) for $2,500,000. Prior to consolidation, a gain of $500,000 (= $2,500,000 - $2,000,000) appears on Ryan's books, and Patrick's books carry the land at $2,500,000. At the date of consolidation, Patrick still owns the land. The necessary eliminating entry made in consolidation for the year of sale is:

Select one:

a. Gain on sale of land 500,000
Land 500,000

b. Gain on sale of land 2,000,000
Land 2,000,000

c. Gain on sale of land 2,500,000
Land 2,500,000

d. No elimination entry is necessary

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Bruce matthews played football for the tennessee titans. as part of his contract, he agreed to submit any dispute to arbitra- tion. he also agreed that tennessee law would determine all matters related to workers' compensation. after matthews retired, he filed a workers' compensation claim in california. the arbitrator ruled that matthews could pursue his claim in california but only under tennessee law. should this award be set aside?