1) The marginal cost is- Select one- a- The cost of making a donation.pdf

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1) The marginal cost is: Select one: a. The cost of making a donation to a charitable activity. b. The cost that arises from increasing an activity. c. The accumulated cost of performing an activity that costs us. d. The accumulated cost of abandoning an activity that benefits us..

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1) Platt Corporation paid $87,500 for a 70% interest in Suve Corporation on January 1, 2014, when Suve's Capital Stock was $70,000 and its Retained Earnings $30,000. The fair values of Suve's identifiable assets and liabilities were the same as the recorded book values on the acquisition date. Trial balances at the end of the year on December 31, 2014 are given below: Platt Suve Cash $4,500 $20,000 Accounts Receivable 26,000 30,000 Inventory 100,000 80,000 Investment in Suve 87,500 Cost of Goods Sold 60,000 40,000 Operating Expenses 22,000 37,000 Dividends 15,000 10,000 $315,000 $217,000 Liabilities $47,000 $27,000 Capital stock, $10 par value 100,000 70,000 Additional Paid-in Capital 10,000 Retained Earnings 31,000 30,000 Sales Revenue 120,000 90,000 Dividend Income 7,000 0 $315,000 $217,000 During 2014, Platt made only two journal entries with respect to its investment in Suve. On January 1, 2014, it debited the Investment in Suve account for $87,500 and on November 1, 2014, it credited Dividend Income for $7,000. Required: 1. Prepare a consolidated income statement and a statement of retained earnings for Platt and Subsidiary for the year ended December 31, 2014. 2. Prepare a consolidated balance sheet for Platt and Subsidiary as of December 31, 2014..

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