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NEW QUESTION: 1
Kevin Rathbun, CFA, is a financial analyst at a major brokerage firm. His supervisor, Elizabeth Mao, CFA, asks him to analyze the financial position of Wayland, Inc. (Wayland), a manufacturer of components for high quality optic transmission systems. Mao also inquires about the impact of any unconsolidated investments.
On December 31,2007, Wayland purchased a 35% ownership interest in a strategic new firm called Optimax for $300,000 cash. The pre-acquisition balance sheets of both firms are found in Exhibit 1.

On the acquisition date, all of Optimax's assets and liabilities were stated on its balance sheet at their fair values except for its property, plant, and equipment (PP&E), which had a fair value of $1.2 million. The remaining useful life of the PP&E is ten years with no salvage value. Both firms use the straight-line depreciation method.
For the year ended 2008, Optimax reported net income of $250,000 and paid dividends of $100,000.
During the first quarter of 2009, Optimax sold goods to Wayland and recognized $15,000 of profit from the sale. At the end of the quarter, half of the goods purchased from Optimax remained in Wayland's inventory.
Wayland currently uses the equity method to account for its investment in Optimax. However, given the potential significance of the investment in the future, Rathbun believes that a proportionate consolidation of Optimax may give a clearer picture of the financial and operating characteristics of Wayland.
Rathbun also notes that Wayland owns shares in Vanry, Inc. (Vanry). Rathbun gathers the data in Exhibit 2 from Wayland's financial statements. The year-end portfolio value is the market value of all Vanry shares held on December 31. All security transactions occurred on July 1, and the transaction price is the price that Wayland actually paid for the shares acquired. Vanry pays a cash dividend of $1 per share at the end of each year. Wayland expects to sell its investment in Vanry in the near term and accounts for it as held- for-trading.
Wayland owns some publicly traded bonds of the Rotor Corporation that it reports as held-to-maturity securities.
Which of the following best describes WaylancTs treatment of the intercompany sales transaction for the quarter ended March 31, 2009? Wayland should reduce its equity income by:
A. $2,625.
B. $15,000.
C. $7,500.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Since al! of the profit from the intercompany transaction is included in Optimax's net income, Wayland must reduce its equity income of Optimax by the pro-rata share of the unconfirmed profit- Since half of the goods remain, half of the profit is unconfirmed. Thus, Wayland must reduce its equity income $2,625 (($15,000 total profit x 50% unconfirmed) x 35% ownership interest]. (Study Session 5, LOS 21.b)

NEW QUESTION: 2
Which of the following statements is true? Select the correct answer.
A. WSDL definitions can use XML schemas to define the types used by WSDL input and
output messages.
B. WSDL definitions cannot be used in conjunction with XML schemas.
C. WSDL definitions can use XML schemas to define the types used by WSDL input and
output operations.
D. WSDL definitions can use XML schemas to define the types used to establish the
location used by service consumers to access the WSDL definitions.
Answer: A

NEW QUESTION: 3
What is the correct order of steps to create an Integration Service from scratch?

Answer:
Explanation:

Explanation
To create an integration service by defining a new interface, complete the following steps:
* Open the New Integration Service wizard by using one of the following methods:
* Click File > New > Integration Service.
* In the Application Development view, click New > Start by creating an integration service.
* Right-click the white space of the Application Development view then click New > Integration Service.
* Enter a name for the integration service, and optionally a description.
* To specify how you want to define the interface for your integration service, select Define it myself using the integration service editor
* Specify where you want to store your interface definition.
* If the definition will be used by this integration service only, store the definition in the integration service project.
* If the definition might be used by multiple integration services, store the definition in a shared library.
Procedure

NEW QUESTION: 4

A. Option A
B. Option C
C. Option D
D. Option B
Answer: D