Answer:
14.7%
Explanation:
The computation of return on investment is shown below:
Return on Investment = Net Income ÷ Average total assets × 100
where,
Net Income is
= Sales - Cost of goods sold - Operating expense
= $4,525,000 - $2,550,000 - $1,372,000
= $603,000
And,
Average total assets = $4,100,000
So,
Return on Investment is
= $603,000 ÷ $4,100,000 × 100
= 14.7%
Answer:
goodwill = $65
Explanation:
given data
book value of assets = $175 million
book value of liabilities = $45 million
actually pays = $195 million
to find out
purchase would result in goodwill
solution
we get here first Value of firm B that is
Value of firm B = Value of Assets - Value of Liabilities .................1
Value of firm B = $175 - $45
Value of firm B = $130
and
goodwill = purchase cost - value of firm's assets .....................2
goodwill = $195 - $130
goodwill = $65
Answer:
a. $848,000
b. No
Explanation:
a. The calculation of consolidated equipment balance as of December 31, 2018 is shown below:-
Consolidated equipment balance = Equipment balance of Haynes + Equipment balance of Turner + Allocation based on fair value - Depreciation
= $500,000 + $300,000 + $5,000 - (($5,000 ÷ 5 × 2)
= $500,000 + $300,000 + $5,000 - $2,000
= $848,000
2. No it will not affect by the investment method applied by the parent.
Answer: B
Explanation: taking the test rn and I got it right
Answer:
1st copyright will not be reported on balance sheet.
2nd copyright will be reported on balance sheet.
Dr Copyright (Intangible Asset) $34,000
Cr Cash $34,000
Explanation:
<u>1st Copyright</u>
If an intangible asset is internally generated, none of its costs are capitalized.
<u>2nd Copyright</u>
Acquired copyright is reported on balance sheet as an intangible asset. Company may include only outright purchase costs in the acquisition cost of an intangible asset; the acquisition cost does not include cost of internal development.
Only recognized intangible assets with finite useful lives are amortized. Recognized intangible assets having indefinite useful lives are not amortized.
