Solve the Problem

question 43

Multiple Choice

Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
-The Oak House had a markup of $23.24 on an oak table that they sold for $70.99. Find (a) the cost, (b) the markup on cost, and (c) the selling price as a percent of cost.

• A)$70.99, 32.7%, 305.5%
• B)$47.75, 48.7%, 148.7%
• C)$47.75, 32.7%, 67.3%
• D)$94.23, 24.7%, 75.3%

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Definitions:

Acquisition Method

An accounting technique used in mergers and acquisitions to consolidate the financial statements of the acquiring and acquired entities by recording assets at fair value and recognizing goodwill.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate governance.

Accounting Implications

The effects or outcomes that accounting practices and principles have on financial statements and business decisions.

Business Combination

A transaction or event in which two or more businesses come together to form one company.