Answer:
$1,002,000
Explanation:
The costs incurred on the share for share exchange include the fair value per share ,issue costs,direct cost as well as contingent consideration(consideration based on the acquired business performance.
However,the costs eligible to be recorded as investment upon acquisition are the fair value per share and the contingent obligation as shown below:
Fair value (entire shares) $50*20,000=$1,000,000
fair value of potential obligation =$2000
total value of investment $1,002,000
The issue costs and direct should be expensed immediately.
Answer: Nacho's operating income= b. $6,510.
Explanation:
First, we calculate the Total Asset of the Divison.
Asset turnover = Sales/ Total Assets
Total Assets = Sales/ Asset turnover
= $217,000/ 4
Asset turnover=$54,250
Also Return on investment = Operating Income/ Total Assets
Therefore Operating Income=Return on investment x Total Assets
= 12% X 54,250
=$6,510
Answer:
B. is equal to the total of frictional and structural unemployment.
Explanation:
The natural rate of unemployment is the sum of frictional and structural unemployment at any given time. Economists estimate that for the United States this rate is around 3.5%.
Unemployment has a natural rate because no matter how good the economy is doing, some people either do not want to work, are in between jobs (frictional unemployemt), or lack the skills necessary to get employed and need to undergo training (structural unemployment).
Present Value involves discounting, and future value involves compounding.
The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.
To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.
Answer:
2. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.
Explanation:
Economics is defined as a study of how a society uses its limited resources. It deals with consumption, distribution, and production of goods and services.
Economics tries to find ways that unlimited wants can be satisfied with limited resources. Theories postulated are focused on how to optimally use scarce resources for production of goods and services, how am individual or organisation can maximise it's utility of a product.
