We see that for every 8 sandwiches that the customer needs, he will pay for 5. Lets see how many groups of 8 sandwiches the order of 675 sandwiches contains. If we do Euclidean Division we see that there are 84 groups of 8 and that three sandwiches are the remainder. 675/8=84.375; Hence we have 84 groups and 0.375*8=3 sandwiches that remain. Thus, the customer would play for 84*5= 420 sandwiches if he had ordered 84 groups of 8 (namely 672 sandwiches). Since he needs another 3 sandwiches and there is no promotional offer for those, he will have to pay in total for 423 sandwiches. It is important to not divide the total number by 8 and then multiply it by 5; the customer gets the free sandwiches only if he completes an offer of 5 sandwiches, thus we have to group the sandwiches in octads and deal with the remainder separately.
Answer: Barbara needs to look for running balance or the amount the has been recorded.
Answer:
ABC has a gain of $145,000 and Andre's dividend income is $130,000
Explanation:
Property ABC issued, has the following:
fair market value = $350,000
Adjusted basis = $205,000
Liability = $220,000
Calculate ABC's Corporation gain:
Gain = market value - Adjusted basis
= $350,000 - $205,000
= $145,000
ABC has a gain of $145,000
Calculate Andre's dividend income since he is the sole shareholder:
Dividend earnings = fair market value - liability
= $350,000 - $220,000
= $130,000
Andre's dividend income is $130,000
Correct option is D.
With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000
Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
<u />
Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
<u />
b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
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Answer:
2.6 years
The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flow
Cash flows is used in calculating the payback period.
To derive the payback period from net income, add depreciation to net income
$82,000 + $42,000 = $124,000
$321,000 / $124,000 = 2.6 years
I hope my answer helps you