Adam Steals from Business Resources,Inc

question 71

Essay

Adam steals from Business Resources,Inc. ,ten computer hard drives,which Adam sells to Computer Products Corporation (CPC).Unaware that the drives are stolen,CPC reconditions them and sells them to Direct Marketers,Inc.With the reconditioned drives,CPC gives Direct Marketers a written statement that disclaims "any and all warranties." Business Resources learns that Direct Marketers has the drives and de?mands their return.Direct Marketers gives the equipment to Business Resources and files a suit against CPC.Will Direct Marketers succeed in its suit? Why or why not?

Compute goodwill and recognize its impairment.

Prepare consolidated retained earnings statements.

Understand and calculate deferred taxes on unrealized profits.

Grasp the treatment of preferred shares in consolidation, including cumulative dividends and arrears.

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Definitions:

Institutional Constraint

Restrictions and limits imposed by laws, regulations, and social norms that affect the decisions and actions of individuals and organizations.

Production Possibilities

define the alternative combinations of different goods or services that can be produced in a society with all its resources fully and efficiently utilized.

Cold War

The period of geopolitical tension between the Soviet Union and the United States, including their allies, from the end of World War II until the dissolution of the Soviet Union in 1991.

Productive Efficiency

A situation where the economy or a production system can no longer produce additional amounts of a good without lowering the production level of another product.