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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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Answer:

Longard Corp.

The money that Longard Corp. receives is:

= $75 million.

Explanation:

a) Data and Calculations:

Number of shares issued = 5 million

Investment bank underwriter pays per share to Longard Corp = $15

Stock price to the public = $20 per share

Total amount received from the underwriter = $75 million ($15 * 5 million)

b) The calculations show that the investment bank will eventually receive $100 million ($20 * 5 million) from the public offer.  It then charges $5 per share (representing a total underwriting fee of $25 million).  This is why it remits only $75 million to Longard Corp.

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3 years ago
The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs tha
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Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

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3 years ago
There is a degree of task specialization in all societies. In the danakil region of eritrea, the afar men occasionally mine what
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Salt was the mineral that the afar men occasionally mined as a trade good.

3 0
1 year ago
If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other e
Aleksandr [31]

As the output is increased or decreased, these (B) fixed costs remain unchanged.

<h3>What are fixed costs?</h3>
  • Fixed costs, also known as indirect costs or overhead costs in accounting and economics, are corporate expenses that are independent of the volume of goods or services generated by the business.
  • They are usually recurrent, such as monthly interest or rent.
  • These expenses are frequently capital expenses.
<h3>Explanation -</h3>
  1. Dependent refers to a variable that changes when other factors change.
  2. Fixed cost refers to a cost that doesn't change when the number of goods produced increases or decreases.
  3. Opportunity cost refers to the benefit that you would have received from the option that was not chosen.
  4. Marginal cost refers to the change in the cost when you produce an additional unit.
  5. According to this definition and as the statement refers to a cost that doesn't change.

Therefore, as the output is increased or decreased, these (B) fixed costs remain unchanged.

Know more about fixed costs here:

brainly.com/question/3636923

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Complete question:

If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As the output is increased or decreased, these _______ costs remain unchanged.

a. dependent

b. fixed

c. opportunity

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5 0
2 years ago
Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three
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Answer:

Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three  other students. One of your roommates has to suddenly move out! How much will your share of  the expenses increase to, until you can find a new roommate?​

if $750= 1 month

?= 12 months

then we have; $9000 per year shared by 4 friends

9000/4= $2250 per person in a year and

2250/12= $187.5 per person in a month

If someone left, then we have

$750= 1 month

?= 12 months

$9000/3= $3000 per person in a year

$3000/12= $250 per person in a month

So therefore, the share of expenses monthly increases from $187.5 to $250

Explanation:

7 0
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