Answer:
productivity
Explanation:
to measure a company's productivity hours of labor or number of workers are taken into consideration. means efficient usage of labor
Answer:
a. $4.4 million
Explanation:
a. 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 = The market value of Red River Chips' assets - the market value of liabilities
= $7 million - $6.2 million
= $0.8 million
And, the purchase value of Red River Chips for cash is $5.2 million
So, the goodwill would be
= $5.2 million - $0.8 million
= $4.4 million
b. Goodwill is an intangible asset that is recorded in the asset side of the balance sheet. It is used for impairment tests annually. Since the fair value is less than the carrying value so the journal entry would be
Loss on impairment A/c Dr XXXXX
To Goodwill A/c XXXXX
(Being loss on impairment is recorded)
Answer:
$620.92
Explanation:
Present Value Paid at Maturity = Face Value / (Market Rate/ 100) ^ Number Payments
Present Value of Interest Payments = Payment Value * (1 - (Market Rate / 100) ^ -Number Payments) / Number Payments)
Present Value of Bond = Present Value Paid at Maturity + Present Value of Interest Payments
