Answer:
Goodwill = 25,000
Explanation:
Goodwill is an intangible asset, is the differential reflected in a consolidated balance sheet immediately after the business combination between the purchase price of a company and the fair market value of identifiable assets and liabilities. Goodwill is recorded when the purchase price is higher than the sum of the fair value of all identifiable tangible and intangible assets purchased in the acquisition and the liabilities assumed in the process.
In this case:
Goodwill = Purchse Price - Net assets fair value
Goodwill = 340,000 - 315,000
Goodwill = 25,000
The difference between the book value and fair value of the acquired company are adjustments to the amount presented in the consolidated balance sheet.
Answer:
Annual depreciation= $32,500
Explanation:
Giving the following information:
Purchase price= $70,000
Salvage value= $5,000
Useful life= 4 years
<u>To calculate the annual depreciation under the double-declining-balance method, we need to use the following formula:</u>
<u></u>
Annual depreciation= 2*[(book value)/estimated life (years)]
<u>2022:</u>
Annual depreciation= 2*[(70,000 - 5,000) / 4]
Annual depreciation= $32,500
A public good is a product or service that is available to all members within a society. This type of good is given by the government or a private individual organization without hesitation of who is allowed to use it. Roads are an example of a public good because there is no exclusion on who can drive on a public road. A private good is excludable and only certain people receive the benefits from it. A quasi-public good has characteristics of a private and public good. A. Cable television is an example of a quasi-public good. Cable TV is available to everyone but for everyone to have the TV, they have to pay for it.
Answer:
The most applicable answer from my point is in such a scenario, producers overproduce the product because of a supply-side market failure.
Explanation:
So what is market failure? Simple, Market failure occurs when a market is unable to effectively and efficiently manage its resources because of the breakdown of price mechanisms functions which rare caused by negative and sometimes positive externalities.
In here, Supply side market failure occurs when the producers don't have to pay the full cost of their output. That is the actual cost of production is greater that the recorded cost.
In Market failure, the supply and demand of the market do not meet the equilibrium price and quantity and eventually leads to the loss of social welfare and ineffective economic decision making.
Imperfect information in the market and the increase of power in the sellers side could lead to supply side market failure.
