1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
const2013 [10]
3 years ago
14

Cullumber Company’s 12/31/21 balance sheet reports assets of $11450000 and liabilities of $4890000. All of Cullumber’s assets’ b

ook values approximate their fair value, except for land, which has a fair value that is $690000 greater than its book value. On 12/31/21, Egbert Corporation paid $11642000 to acquire Cullumber. What amount of goodwill should Egbert record as a result of this purchase?
Business
1 answer:
Arturiano [62]3 years ago
4 0

Answer:

$4,392,000

Explanation:

For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = Asset balance + fair value of land  - liabilities balance

= $11,450,000 + $690,000 - $4,890,000

= $7,250,000

And, the acquire value is $11,642,000

So, the goodwill would be  

= $11,642,000 - $7,250,000

= $4,392,000

You might be interested in
The optimal capital structure has been achieved when the: debt-equity ratio is equal to 1. debt-equity ratio results in the lowe
icang [17]

The optimal capital structure can be realized if : Debt-equity ratio selected results in the lowest possible weighted average cost of capital.

  • An optimal capital structure can be regarded as best mix of debt as well as equity financing which maximizes a company's market value.

  • And as well minimizing its cost of capital, it can be realized when Debt-equity ratio  that is been selected, gives the lowest possible weighted average cost of capital.

Learn more at:

brainly.com/question/10782180?referrer=searchResults

3 0
2 years ago
Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related
Brums [2.3K]

Answer:

1. Tax avoidance

2.Tax avoidance

3.Tax evasion

Explanation:

Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.

Examples of tax avoidance are;

1. Andrea keeps a record of all her business related expenses.

2. Daniel claims the amount of interest paid for his mortgage as tax deductions.

Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.

Example of tax evasion is ;

3. Christian did not report the tips he earned on his tax return.

7 0
2 years ago
Brian is a truck driver who delivers products throughout Massachusetts. His friend Chris is a traffic planner for the same state
DiKsa [7]

Answer:

Assuming that you can only choose one answer, the most suitable one would be (A) Chris designs models to make traffic flow better, which enables Brian to get to his company’s warehouse faster.

Explanation:

This answer is correct because Chris is a traffic planner – thus he merely designs the traffic flow, he does not create it, thus making answer (D) incorrect. Though (B) is true, it doesn’t relate to Chris’ career, making it false as well. As for (C), the answer is not correct because Chris doesn’t design the maps of the state, he only designs the traffic flow.

6 0
2 years ago
Read 2 more answers
The weekly payroll of Wolverine Corporation is $3,000. Employees work five days per week, Monday through Friday. December 31, 20
ruslelena [56]

Answer:

The answer is: D) Accounts:

                             Salaries Expense: Debit = 1,200

                             Salaries Payable : Credit = 1,200

Explanation:

Salaries expense is a type of expense account (all expense accounts are temporary accounts). When expenses are recorded, they should be debited.

  • Debit record

        Salaries expense 1,200

Salaries payable is a liability account. When liabilities increase, they should be credited.

  • Credit  record

        Salaries payable 1,200

6 0
3 years ago
1.1. define the following concept social change
k0ka [10]

ANSWER:

Social change refers to any significant alteration over time in behaviour patterns and cultural values and norms. By “significant” alteration, sociologists mean changes yielding profound social consequences.

8 0
2 years ago
Other questions:
  • If the cost of the beginning work in process inventory is $56,000, direct materials cost is $346,000, direct labor cost is $212,
    5·1 answer
  • Which of the following investment plans best reflects diversification? Ben has an investment portfolio with numerous stocks and
    7·1 answer
  • Trading centers in other countries helped the mother country in all of the following ways except for
    6·2 answers
  • Savings account A and savings account B both offer APRs of 2%, but savings account A compounds interest quarterly, while savings
    12·2 answers
  • Derrick delivers messages on his bike all over the busy, hilly streets of downtown san francisco. he is engaging in which type o
    14·1 answer
  • Suppose you invest semiannually for 25 years in an annuity that pays 5% interest, compounded semiannually. At the end of the 25
    10·1 answer
  • An upscale restaurant offers a special fixe prix menu in which, for a fixed dinner cost, a diner can select from four appetizers
    15·1 answer
  • The cost method that will yield the highest taxable income during times of inflation is the a.weighted average inventory cost me
    8·1 answer
  • At the end of their discussion of the productivity problems in Ron's department, Cole restated Ron's concerns: "In other words,
    15·1 answer
  • Advertising a home for sale in a minority area exclusively in a paper aimed at that minority group would most likely be regarded
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!