Answer:
correct option is a $0
Explanation:
given data
Acquisition value = $52,000,000
Fair value assets = $48,000,000
to find out
What is the annual amortization of goodwill for this acquisition
solution
we know that annual amortization of goodwill on a straight line basis over 40 years before 2001
and FASB also issue statement about that it does not allow automatic amortization of goodwill
so it will be zero here as goodwill is not amortized here
so correct option is correct option is a $0
Answer:
1. True
2. True
Explanation:
An expansionary gap, also known as the inflationary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of real Gross Domestic Products that exists when a country's economy is guaged at a full employment rate. This eventually causes the price of goods and services to go up with a low income level. Also, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.
Additionally, this simply means in an inflationary or expansionary condition, the potential Gross Domestic Products (GDP) is lower than the real Gross Domestic Products.
The investment accelerator effect states that there is an increase in investment expenditure when there is increase in the level of income or demand. Thus, the level of investment in a particular economy is based on the rate of change in consumption and the gross domestic product (GDP).
Hence, when the investment accelerator is large, there's likely to be a short-run increase in investment due to expansionary fiscal policy. The expansionary fiscal policy is usually less when the the interest rate sensitivity of investment is large and consequently, leading to a greater decline in investments.
When the Fed buys government bond from a bank, then, bank will acquires money which it can lend out, thus, leading to an increase to money supply.
The open market operations entails the purchase and sales of government bonds by the Federal Reserve (Fed).
- When Fed purchases government securities on open market,, this increases the reserves of commercial banks, increases the price of government securities, reduces overall interest rates etc.
Therefore, when the Fed buys the government bond from a bank, then, the bank will acquires money which it can lend out, thus, leading to an increase to money supply.
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Answer: b. can reject the entire shipment
Explanation: TV Stores can reject the entire shipment if the goods received from Screen Perfect Inc. do not conform exactly to the terms of the contract in some details. Under the perfect tender rule, Screen Perfect Inc. must ship or tender goods to TV Stores that exactly conform to the contract in every detail. The rule refers to the legal right for a buyer of a good to insist upon "perfect tender" in terms of quality, quantity, and manner of delivery by the seller.
Answer:
11.57% and 9.02%
Explanation:
For computing the before-tax and after- tax cost of debt we use the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,050 - $20 = $1,030
Future value or Face value = $1,000
PMT = 1,000 × 12% = $120
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 11.57%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 11.57% × ( 1 - 0.22)
= 9.02%