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Marianna [84]
3 years ago
7

Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $6.

8 million. Jungleland’s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $1.7 million; buildings, $3.4 million; inventory, $2.2 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities, $1.5 million. Required: How much goodwill will result from this transaction? (Enter your answers in whole dollars.)
Business
1 answer:
sveta [45]3 years ago
7 0

Answer:

The goodwill is $1.1 million

Explanation:

In this question, first we have to compute the net asset which is shown below:

Net asset = Total asset - total liabilities

where,

Total asset = Land + building + inventory

                  = $1.7 million + $3.4 million + $2.2 million

                  = $7.3 million

And, the total liabilities = long term note payable = $1.5 million

So, the net asset would equal to

= $7.3 million - $1.5 million

= $5.8 million

Now the goodwill equal to

=  Cash purchase price - net asset

= $6.8 million - $5.8 million

= $1.0 million

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Explanation:

B C and D have become tools that have been tried.

Deficit spending is a budget/government policy. Its use should be very limited.

Same with Increased Government Spending. FDR was the master at controlled government spending.

Reducing income taxes is another government policy.

So only A is an example of monetary policy. This is a regulation imposed on the Banks by the Federal Reserve.

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3 years ago
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T Company expects to incur the following per unit costs for 1,000 units of production: Direct materials of 4 pounds per unit at
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Answer:

Total overhead =  = $7,500

so here correct option is E. $7,500

Explanation:

given data

production = 1,000 units

direct labor = ¼ hour @ $24 per hour

variable overhead = 75 % of direct labor

fixed overhead = $3,000

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3 years ago
Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied
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Explanation:

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