I’m pretty sure the answer is c
Answer:
Dr Earnings contingency liability $800,000
Cr Goodwill $800,000
Explanation:
Based on the information given the appropiate journal entry to record the new information includes a credit of $800,000 to:Dr Earnings contingency liability $800,000 and Cr Goodwill $800,000 reason been that the acquisition cost is lesser.
Dr Earnings contingency liability $800,000
Cr Goodwill $800,000
Answer:
A and B can go into a swap to gain advantage while still borrow at their desired rate. Details are in the explanation part.
Explanation:
Both A and B will borrow the same amount in the market, in which:
+ A can borrow from outside, floating at LIBOR + 0.5%. Go to a swap with B to receive LIBOR to B and pay fixed rate of 12% on the borrowed amount. So, total interest rate A has to pay is: Libor - (Libor + 0.5%) - 12.0% = -12.5% or 12.5% fixed => A borrowed fixed at 0.5% lower.
+ B can borrow from outside, fixed at 11%. Go to a swap with A to receive fixed rate of 12% and pay Libor to B on the borrowed amount. So, total interest rate B has to pay is: 12% - Libor -11% = -(Libor - 1%) or Libor - 1% floating => B borrowed floating at 2.5% lower.
In rewriting this, Susan works in a small manufacturing firm that makes customized and ergonomically sound office with furniture. Susan feels that is it important to work directly with customers to design high quality desks and chairs that precisely meet their needs. Clearly from the given information, we we can conclude that Susan tends to focus on more important things.
