Answer:
The goodwill is $9,220
Explanation:
Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.
Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.
Net assets=$89,600-$14,800
Net assets =$74,800
Since purchase consideration paid is $84020
Goodwill=$84,020-$74800
Goodwill=$9,220
The goodwill of $9220 represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.
Answer:
E) It would not necessarily be considered high elsewhere.
Explanation:
The US inflation rate during 1979 was 11.26%, during 1980 it was 13.55%, and during 1981 it was 10.33%. These numbers may seem very high for American standards, but they aren't really high once you compare them to other nation's inflation rate.
For example, if we look at what is happening in two South American countries right now; Currently Venezuela is facing a hyperinflation measured by millions, and Argentina's current inflation rate is around 60%.
Back in the 1980s, hyperinflation rates were much more common. Argentina, Bolivia, Brazil, Mexico, Peru and Nicaragua, all suffered from hyperinflation (inflation rates in the 1,000s).
The US dollar is considered a very stable currency, that is why an inflation rate of around 10% was considered extremely high for American standards, but not so high compared to the rest of the world.
Answer:
Amount of Dividend that was just paid is $1.39
Explanation:
Dividend yield = Dividend for next period / Current price
Dividend for next period = 44 * 3.3%)
=$1.452
Hence, dividend that was just paid=Dividend for next period*Present value of discounting factor(rate%,time period)
= 1,452 / (1+0.046)
= 1.452 / 1.046
= 1.3881
= $1.39
Answer:
$11,750
Explanation:
The computation of bad debt is shown below:-
Bad debt expense = Estimated allowance for uncollectible at the year end - Existing balance in allowance for uncollectible account credit balance
= ($314,000 × 4%) - $810
= $12,560 - $810
= $11,750
Therefore for computing the bad debt expenses we simply applied the above formula.
