Answer: <u><em>$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.</em></u>
Given:
Wood Corp. issued 100,000 shares of its $20 par value
The market value of Wood's common stock on August 31 was $36 per share.
Wood paid a fee of $160,000 to the consultant who arranged this acquisition.
Costs of registering and issuing the equity securities amounted to $80,000.
∴ Cost of acquiring = 100,000 shares issued × $36 per share
= $3,60,000
Answer:
a.balance sheet as a current liability
Explanation:
Unearned fee refers to money received from a customer for services not yet done, or for goods not delivered. It is a prepayment for work not yet done. Unearned fees are reported in the accrual accounting system. The economic activity that results in earning revenue has not been executed.
Unearned fees create an obligation for the business to honor. The business becomes indebted to the customer who has made a prepayment. An unearned fee is thus a debt and has to be recorded as a liability. In practice, the service or goods paid for in advance should be delivered within the same period. Therefore, the unearned fee is recorded as a current liability.
Answer:
The amounts that Sandoval should recognize as current tax expense in Years 1 and 2 are $29,000 and $34,000, respectively.
Explanation:
year 1:
$80,000*30% + $20,000*25%
= $29,000
year 2:
$120,000*30% - $40,000*(30%-25%)
= $34,000
Therefore, The amounts that Sandoval should recognize as current tax expense in Years 1 and 2 are $29,000 and $34,000, respectively.
Answer:
Its important to diversify because it can help an investor manage risk and reduce the volatility of an asset's price movements. If his high risk investment backfires hes left with almost nothing, diversifying can give him a safety blanket just incase. The many ways he can diversify include, but aren't limited to, Use asset allocation or target date funds, Invest in a mix of mutual funds or ETFs, Customize with individual stocks and bonds, Vary company size and type, Invest abroad, and add complexity.
Explanation:
Answer:
The correct answer to the following question is option B) a double coincidence of wants .
Explanation:
The term double coincidence of wants ( which is also know as coincidence of wants ) can be defined as a situation where a buyer and seller can simultaneously fulfill each other's needs and wants because both of them possess what other want. Here if both parties possess what other want , they can directly exchange it , without any use of monetary medium.
