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Gnesinka [82]
1 year ago
5

When one company acquires control of another, how are the acquired company's assets and liabilities recorded?

Business
1 answer:
uranmaximum [27]1 year ago
5 0

The client will tackle all of the target company's money asset and liabilities, whether or not they may be known at the time of the sale or not. This is, even though a patron is not aware of a corporation's money owed and the time of the sale, they'll still be held accountable for them after the acquisition.

The acquisition gets incorporated into the acquirer's stability sheet, like the purchase of another asset. Financing objects trade (cash, debt, and equity), and the asset and liability accounts rise. No new subsidiary gets created.

Buy acquisition accounting is now the usual way to record the acquisition of a company at the balance sheet of the acquiring enterprise. The assets of the received agency are recorded as property of the acquirer at honest market value. This technique of accounting will increase the fair marketplace fee of the acquiring organization.

An acquisition is whilst one enterprise takes over any other organisation, and the acquiring employer will become the owner of the goal employer. In different words, the received organization now not exists following an acquisition because it has been absorbed by the acquirer. The equity stocks of the acquiring agency continue to change.

Learn more about Aquired company here

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3 years ago
Bramble Corp. incurs the following costs to produce 9900 units of a subcomponent: Direct materials$8316 Direct labor11187 Variab
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$3,762

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Variable overhead $12,474

Total $31,977

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5 0
3 years ago
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities o
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Answer:

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Net Working capital = Current Assets - Current Liabilities

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Current Assets = $2,715 + $3,908

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Now calculate Total Assets:

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6 0
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Once we have a short-run equilibrium output, we can then compare it to the full employment output to figure out where in the business cycle we are. If current real GDP is less than full employment output, an economy is in a recession. If current real GDP is higher than full employment output, an economy is experiencing a boom. If the current output is equal to the full employment output, then we say that the economy is in long-run equilibrium. Output isn’t too low, or too high. It’s just right.

Explanation: hope this helps

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