Answer:
diversification
Explanation:
According to my research on ,different financial strategies I can say that based on the information provided within the question this is an example of diversification. This is the process of a business separating or varying it's range of products in their operations in order to reduce their risks in a certain market.
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Complete question:
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a. 150,000
b. 250,000
c. 0
d. 120,000
e. 170,000
Answer:
150,000
of goodwill should be attributed to the non-controlling interest at the date of acquisition
Solution:
A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.
Now , Calculate the amount
Cost(PP) - 1,600/0.8 = 2,000
FV - 1,850
GW = 1,850 - 2,000
= 150,000
Answer:
$2,300,000
Explanation:
The formula to compute the operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - operating expenses - depreciation expense
= $7,000,000 - $4,000,000 - $1,000,000
= $2,000,000
And, the income tax expense is
= $2,000,000 × 0.35
= $700,000
So, the value would equal to
= $2,000,000 + $1,000,000 - $700,000
= $2,300,000
We simply applied the above formula
<span>For a producer surplus of $180 coming from sales of 12 units, this would be the result from (180 / 12), or $15 per purse. Taking the cost she has to pay for each unit, $35, and adding the $15 surplus to each, this leads to a sale price of (35 + 15), or $50 per purse.</span>
The sale and purchase of government securities by the Fed would leave reserves unchanged.
<h3>
What is the effect of the purchase and sale of government securities?</h3>
The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.
One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.
Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)
($500 / 0.2) - (500 / 0.2) = 0
To learn more about reserve ratio, please check: brainly.com/question/6831267
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