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erik [133]
3 years ago
15

On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy

had common stock of $100,000 and retained earnings of $420,000. Equipment and land were each undervalued by $50,000 on Avergy’s books. There was a $40,000 overvaluation of Bonds Payable, as well a $60,000 undervaluation of inventory.
What is the amount of goodwill recorded in connection with this combination?
a. $0
b. $ 50,000
c. $ 80,000
d. $200,000
Business
1 answer:
Dahasolnce [82]3 years ago
4 0

Answer:

b. $ 50,000

Explanation:

Investment cost                    

720000

Book value of net asset

100000

420000

--------------

520000

Excess

200000

Allocated as follows

Land and equipment                              50000

overvaluation of bonds payable            40000

Undervaluation of inventory                    60000

Total                                                          150000

Un allocated amount    

Goodwill                                                    50000

Total                                                        200000

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The budget for the month of May was for 11,200 units at a direct materials cost of $19 per unit. Direct labor was budgeted at 28
rjkz [21]

Answer:

Direct labor price(rate) variance = $1,675  (unfavorable)

Direct labor efficiency variance = 0

Explanation:

As per the data given in the question,

Number of units = 11,200

cost = $19 per unit

Labor budgeted = at 28 minutes per unit

Total budget = $100,800

Actual output = 8,900 units

Direct material expense = $137,500

Direct labor expense = $81,775

As per the following formula,

Direct labor price variance = (Actual price - Standard price) × Actual hour

= ($81,775 ÷ 8900 × 2 - $100,800 ÷ 11,200 × 2) × 8,900 ÷ 2

= $1,675  (unfavorable)

Direct labor efficiency variance = (Actual hour - Standard hour) × Standard price

= (8,900 × 28 ÷ 60 - 8,900 × 28 ÷ 60 ) × $100,800 ÷ 11,200 × 2

= 0

5 0
3 years ago
Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon
Wittaler [7]

Answer: c. Sydney can diversify 50% of her WillCo stock.

Explanation:

Employee stock ownership plan (ESOP) is simply referred to as an employee benefit where the employees of a particular company are given ownership interest as long as some certain criteria are met.

Once the workers become qualified participants, they can diversify certain percentage of their stocks. From the 1st-5th year, a qualified participant is allowed to diversify about 25% of his or her stock account and about 50% in the 6th year.

Based on the explanation, since Sydney has worked for WillCo for the last 20 years, Sydney can diversify 50% of her WillCo stock.

5 0
2 years ago
Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnershi
tensa zangetsu [6.8K]

Answer:

=$59,000.00

Explanation:

Original investments:

Xavier: $50,000.00

Yolanda $ 100,000.00

Allowances:

Xavier: $ 34,000.00

Yolanda : $ 26,000.00

Income at $120,000.00

Xavier allocation will be:

Calculating interest on the original investment

Xavier =20/100x $50,000.00 =$10,000.00

Yolanda=20/100 x$100,000.00 = $20,000.00

Total interest on original investments = $30,000.00

Total allowances = $34,000+$26000=$60,000.00

Shareable income= $120,000.00- ($30,000+$60,000)

      = $30,000

                  each gets $15,000.00

Xavier will get $ 15,000 + $ 10,000 +$ 34,000

=$59,000.00

5 0
3 years ago
A worksheet contains sales dollars for agents with your company. The values are $1,250, $1,090, $985, $985, $880, $756, $675, $6
ivolga24 [154]

Answer:We use the Large Function. the general formula is  =LARGE(first cell:last cell,3) .Please refer to the explanation section for details

Explanation:

Let us assume

A 1 = $1,250,  A 2 = $1,090, A 3 = $985, A 4 = $985, A 5 = $880, A 6 = $756, A 7 = $675, A 78= $650, and A 9 =$600

Using the Large function on excel to return the third largest value, on the formula bar we have the following formula;

=LARGE(A1:A2,3)

7 0
3 years ago
Select the correct answer.<br> How is augmented reality used in businesses?
garri49 [273]

Answer:

It uses everyday things, items like iPhones or tablets, sensors and market to find the place of physical items and then suggest where to put virtual objects.

This might be a little off since I'm not very familiar with business stuff, but I hope this helps.

7 0
3 years ago
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