The case of Fujitsu Ltd. v. Federal Express Corp. had to do with whether:

Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc

Andrew [12]

Answer:

I could not find the exact details related to this question so here is a similar question to guide you.

Goodwill = Acquisition Price - Net book value (Investee)

= 75,000 - ( Assets - Liabilities)

= 75,000 - ( 90,000 - 40,000)

= $25,000

Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.

= 10,000 ( 1 - 40%)

= $6,000

Net Goodwill = 25,000 - 6,000

8 0

3 years ago

Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this

AlexFokin [52]

Answer:

differential analysis:

No further process Process further Differential

amount

Sales revenue $410,000 $1,213,400 $803,400

Production costs ($340,000) ($580,000) ($240,000)

Operating income $70,000 $633,400 $563,400

The company should process further and sell products B and C because its operating income will increase by $563,400.

6 0

3 years ago

On November 26, Joe wrote to Kate offering to purchase a farm that she owned. Upon receiving the letter on November 28, Kate imm

slega [8]

Answer:

No, a contract has not been form because the offer has been revoked

Explanation:

an offers can be terminated if there is rejection of offer by the offeree. an offer can be revoked before its has been accepted. Since the revocation is made known to Joe before the letter of acceptance reach joe. No contract has been form.

Acceptance or rejection of offer can be done orally or written. orally can be through phone communication.

the phone call can also be a form of rejection of offer which has been declared by the offeree.

4 0

3 years ago

Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000

Natasha_Volkova [10]

Answer:

the company should choose method 1

Explanation:

Method 1 Method 2

Initial outlay $550,000 $830,000

operating costs (years 1,2,3) $160,000 $120,000

salvage value $125,000 $324,000

we must determine which alternative has the lowest present value:

method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 = <u>$853,982</u>

method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996

5 0

3 years ago

Morgan Manufacturing recently sold goods that cost $35,000 for $45,000 cash. The journal entries to record this transaction woul

Alex777 [14]

Answer:

The journal entries to record this transaction would include: E. a credit to Sales Revenue for $45,000.

Explanation:

When Morgan Manufacturing sold goods, the company should make two journal entry to record Cost of goods sold and Sales revenue.

The entries:

1. Debit Cost of goods sold $35,000

Credit Finished-Goods Inventory $35,000

2. Debit Cash $45,000

Credit Sales revenue $45,000

The journal entries to record this transaction would include: E. a credit to Sales Revenue for $45,000.

4 0

3 years ago