This problem requires us to calculate the total stockholders' equity. Total of assets, liabilties and retain earnings is given in the question. We can calculate the stock amount by using simple balance sheet equation that is given below.
Total Assets = Total laibilities + Retain earnings + Equity
(B) seek a joint venture with a large competitors.(C) Test market the product among potential users.
(D) develop an advertising campaign to pursuade consumers of the value of the new water purifier system.
Answer: (C) Test market the product among potential users.
Explanation: In other to ascertain the superiority and quality of the purification device, it is important to embark on a tentative phase whereby the product is tested among a pool of potential users or customers, get there feedbacks, analyze before deciding to embark on a full scale production. This phase is required in other not to get carried away by positive feedbacks received after the purchase of a superior equipment. The actual testing of the output or level of water purity obtained from using this equipment from the consumer's standpoint is absolutely vital.
The correct transition date which Icon international will show is B) January 1, 2015.
Icon international which was incorporated on January 1, 2013, wants to convert to IFRS( International financial reporting standards ) , which provides a similar international language for business affairs, which would help making company accounts comparable and understandable across the global boundaries.
The correct transition date would be the year starting date ( 1 January ) , as the year in which company starts adopting to IFRS standards and making IFRS statements , so here the January 1, 2015 would be the correct transition date.
Both companies traded inventories without making a profit out of it. Since Candy Co. paid some extra money to Dandy because Dandy's inventory was more valuable, only Dandy should be able to recognize a gain from this transaction, if some gain existed. Remember that the trade was supposedly done without making profit, then the money should have only compensated Dandy, not generated a gain.