Answer:
Cullumber Company
Journal Entry:
Debit Loss on Goodwill Impairment $34,200
Credit Goodwill $34,200
To record the loss on goodwill impairment.
Explanation:
a) Data and Calculation:
Fair value = $820,800
Carrying value of net identifiable assets, including goodwill = $855,000
Goodwill impairment = $34,200 ($855,000 - $820,800)
b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly. The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom. Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment. By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.
The correct answer is C. Functional decomposition
Answer:
the expected sale price based on a terminal capitalization rate is $1283152
Explanation:
The NOI (net operating income) is used in the estimation of the profitability in real estate investment.
The first year NOI of a property is $100000 and it is expected to grow by 2% (0.02) per year and to be sold in next ten years (n = 10 years).
r = 100% + 2% = 102% = 1.02
After ten years, the NOI = first year NOI × 
= $100000 × (1.02)¹⁰ = $121899.442
The terminal capitalization rate is 9.5%. Therefore the expected sale price based on a terminal capitalization rate = $121899.442 / 9.5% = $121899.442 / 0.095 = $1283152
the expected sale price based on a terminal capitalization rate is $1283152
Answer:
Month incurred Amount June July August
June 75,000 37500 18,750 18,750
July 95,000 47,500 23,750
August 95,000 47,500
37,500 66,250 90,000
The expected cash receipts are:
June = $37,500
July = $66,250
August = $90,000
Explanation:
The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.
Answer:
207,000
Explanation:
Data provided
Sold units = 218,000
Ending inventory = 13,000
Opening units = 24,000
The computation of units during September is shown below:-
Number of units manufactured during the year = Sold units + Ending inventory - Opening units
= 218,000 + 13,000 - 24,000
= 231,000 - 24,000
= 207,000
Therefore for computing the number of units manufactured during the year we simply applied the above formula.
