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
STALIN [3.7K]
3 years ago
13

In 2020, Mowchan Inc. acquired Sanchez Co. and recorded goodwill of $290 million as a result. The net assets (including goodwill

) from Mowchan’s acquisition of Sanchez Co. had a 2021 year-end book value of $1,160 million. Mowchan assessed the fair value of Sanchez at this date to be $1,020 million, while the fair value of all of Sanchez’s identifiable tangible and intangible assets (excluding goodwill) was $900 million. The amount of the impairment loss that Mowchan would record for goodwill at the end of 2021 is ____
Business
1 answer:
Stels [109]3 years ago
3 0

Answer:

$170 million

Explanation:

First we must calculate the implied fair value of goodwill:

fair value of goodwill = Sanchez's fair value - Sanchez's asset valuation = $1,020 million - $900 million = $120 million

impairment loss = recorded goodwill - fair value of goodwill = $290 million - $120 million = $170 million

An impairment loss is a loss generated by the decline of an asset's fair value.

You might be interested in
The palmer acres inn is trying to determine its break-even point during its off-peak season. the inn has 50 rooms that it rents
ivanzaharov [21]
They don't hit their break even point with all of the additional costs. They are still $11060 under the break even point at the end of the month
5 0
3 years ago
Jayda started a corporation that creates software products for clients. Which statement correctly reflects Jayda’s role in the c
ki77a [65]
What were the answer choices
6 0
3 years ago
Most four-year colleges want to see that you have participated in community service and extracurricular activities because?
yKpoI14uk [10]
It reflects positively on the college and it shows that you have respect for others are willing to help as well.
4 0
3 years ago
d (i). Suppose that ZX Inc. is currently selling at $50 per share. You buy 200 shares, using $5,000 of your own money and borrow
strojnjashka [21]

Answer:

-21%

Explanation:

Initial share price = $50

Share price after 1 year = $46

net return = (200 x $46) - $10,000 - ($5,000 x 5%) = $9,200 - $10,000 - $250 = -$1,050

rate of return of margined position = -$1,050 / $5,000 = -0.21 = -21%

when you operate on the margin, your earnings can increase or decrease dramatically. In this case, an 8% price decrease resulted in a 215 lose.

8 0
3 years ago
What is the effect of a 10 percent price increase on quantity demanded if elasticity is infinite?
Julli [10]

Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

Examples are luxury goods such as high end cars and expensive jewelry.

4 0
3 years ago
Other questions:
  • DOUBLE POINTS!! Explain the role played by consumers, business, and the government in a market economy. Hint: focus on the facto
    12·1 answer
  • Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the des
    8·1 answer
  • A company currently pays a dividend of $2.2 per share (D0 = $2.2). It is estimated that the company's dividend will grow at a ra
    8·1 answer
  • _________ are long-term obligations issued by governments and private corporations.
    6·1 answer
  • When you compose a message, you want your audience to find the information it needs quickly and to understand it. Your message s
    11·1 answer
  • ​Boeing's decision to build​ 80% of its wing flap motors​ in-house is an example of which​ strategy? A. Unrelated diversificatio
    6·1 answer
  • Giving up one alternative for another is called
    10·1 answer
  • Telefonica Brasil Customer-Retention Program. Telefonica Brasil is one of the largest telecommunications companies in Brazil. It
    15·1 answer
  • What is one benefit of purchasing saving bonds?
    11·2 answers
  • A merit good is Multiple Choice Income payments for which no goods or services are exchanged. A good society holds to a higher s
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!