Answer:
The integration or growth of a company can occur horizontally or vertically, depending on whether it acquires competing companies that develop their business in parallel (horizontal integration), or it acquires companies or businesses that are in a different stage of the production process (companies that generate raw materials, transport, marketing, etc.).
Thus, if Electrolux expands its business by acquiring a competitor such as Whirlpool, it will be a case of horizontal integration. In contrast, if Electrolux acquires a company dedicated to the marketing of products, such as Best Buy, it will be a case of vertical integration.
Answer and Explanation:
<u>Psyche</u>
a b a×b
Years Net income PVF at 8% Goodwill
1 to 5 140000 3.99271 558979.4
Answer:
Annual depreciation= $25,375
Explanation:
Giving the following information:
Purchase price= $109,200
Salvage value= $4,200
Useful life in miles= 120,000
<u>To calculate the depreciation expense, we need to use the units-of-activity method:</u>
<u></u>
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
<u>2018:</u>
Annual depreciation= [(109,200 - 4,200) / 120,000]*29,000
Annual depreciation= 0.875*29,000
Annual depreciation= $25,375
