Although the grapevine supplements what formal communication does not provide sometimes, and creates a sense of unity among employees, they should be wary due it carries partial information and it's more based on rumors; so it's not always trustworthy, especially when it comes to business, because important decisions depend on reliable sources to ensure favorable outcomes.
Answer:
correct option is a $0
Explanation:
given data
Acquisition value = $52,000,000
Fair value assets = $48,000,000
to find out
What is the annual amortization of goodwill for this acquisition
solution
we know that annual amortization of goodwill on a straight line basis over 40 years before 2001
and FASB also issue statement about that it does not allow automatic amortization of goodwill
so it will be zero here as goodwill is not amortized here
so correct option is correct option is a $0
D.) The EPA
The United<span> States Environmental Protection Agency(EPA)</span><span> is an agency made by the </span>federal<span> government of the </span>United<span> States for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress.</span>
Answer:
$708,000
Explanation:
The computation of Investment in Evan Company balance is shown below:-
Purchase of Evan stock = $600,000
Book Value of Evan Stock = Net assets - Given percentage
= $1,200,000 x 40%
= $480,000
Goodwill = Purchase of Evan stock - Book Value of Evan Stock
= $600,000 - $480,000
= $120,000
Life of Goodwill is Indefinite
Annual Amortization is Zero
Cost = $600,000
Income Accrued 2017 = Net income × Given percentage
= $140,000 x 40%
= $56,000
Dividend 2017 = Cash dividend × Given percentage
= $50,000 x 40%
= $20,000
Income Accrued 2018
= $140,000 x 40%
= $56,000
Dividend 2018
$50,000 x 40%
= $20,000
Income Accrued 2019
= $140,000 x 40%
= $56,000
Dividend 2019
$50,000 x 40%
= $20,000
Equals Investment in Evan, 31/12/2019 = Purchase of Evan stock + Income Accrued 2017 - Dividend 2017 + Income Accrued 2018 - Dividend 2018 + Income Accrued 2019 - Dividend 2019
= $600,000 + $56,000 - 20,000 + 56,000 - 20,000 + 56,000 - 20,000
= $708,000
