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Vesna [10]
4 years ago
9

has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value of Kate

's assets is $ 15 comma 000 comma 000 ​(market value, $ 17 comma 000 comma 000 ​), and it has liabilities of $ 13 comma 000 comma 000 ​(market value, $ 13 comma 000 comma 000 ​). Requirements 1. Compute the cost of goodwill purchased by Patton . 2. Record the purchase of Kate by Patton .
Business
1 answer:
svlad2 [7]4 years ago
5 0

Answer and Explanation:

1. The amount of goodwill is shown below:

= Purchase price - the market value of net assets

= $6,000,000 - ($17,000,000 + $13,000,000)

= $2,000,000

2. Now the journal entry for purchase is

Assets $17,000,000

Goodwill $2,000,000

      To Liabilities $13,000,000

      To Cash $6,000,000

(Being the purchase is recorded)

For recording this we debited the assets and goodwill as it increased the assets and credited the liabilities and cash as it also increased the liabilities and decreased the assets

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The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of:.
Firlakuza [10]

A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).

<h3>How is interest decided?</h3>
  • It is based on various risks such as credit risk and maturity risk.
  • Credit risk of a company is shown in its credit rating.
  • The maturity risk increases as the length of time to repayment increases.

The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.

In conclusion, option A is correct.

Find out more on maturity risk at brainly.com/question/24780094.

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2 years ago
Identify the type of writing/Essay.
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was a sudden hush among the people in the crowd on top of Mount Sinai. Following their gaze, I saw a thin red sliver sitting on top of bands of silver-gray clouds, suspended over the desert wilderness. As I continued to watch, the Red Crescent becomes larger, filling out into a semicircle and spilling its pigment onto the clouds and the bleak desert hills. Answer;

12. People often refer to Africa as the Dark Continent, meaning that Africans were uncivilized, unsophisticated, and ignorant people. West Africa, East Africa, and ancient Zimbabwe are examples that refute this stereotype. The Dark Continent would not be an accurate label for Ancient Africa. Answer;

13. The Taj Mehal complex includes a main gateway, a garden with pools of water, a red sandstone mosque, and an identical building called “Jawab” shah Jahan wanted to build the second mausoleum across the river, as grandiose as the Taj Mehal, to have his own remains buried there. He also wanted the two mausoleums to be connected with bridges. But unfortunately, these plans remained on paper.

Explanation:

Identify the type of writing/Essay.

11. There was a sudden hush among the people in the crowd on top of Mount Sinai. Following their gaze, I saw a thin red sliver sitting on top of bands of silver-gray clouds, suspended over the desert wilderness. As I continued to watch, the Red Crescent becomes larger, filling out into a semicircle and spilling its pigment onto the clouds and the bleak desert hills. Answer;

12. People often refer to Africa as the Dark Continent, meaning that Africans were uncivilized, unsophisticated, and ignorant people. West Africa, East Africa, and ancient Zimbabwe are examples that refute this stereotype. The Dark Continent would not be an accurate label for Ancient Africa. Answer;

13. The Taj Mehal complex includes a main gateway, a garden with pools of water, a red sandstone mosque, and an identical building called “Jawab” shah Jahan wanted to build the second mausoleum across the river, as grandiose as the Taj Mehal, to have his own remains buried there. He also wanted the two mausoleums to be connected with bridges. But unfortunately, these plans remained on paper.

7 0
3 years ago
Llcs are mainly capitalized via _______ or through the sale of _______ ownership in the llc itself. (choose two correct answers)
Aleksandr [31]

Llcs are mainly capitalized via Equity or through the sale of Debts ownership in the llc itself.

What is Equity?

Equity is the sum of money invested in or owned by a company's owner. The difference between a firm's obligations and assets on its balance sheet indicates how much equity the company has. The equity value is calculated using the share price or a value established by valuation specialists or investors.

Therefore,

Llcs are mainly capitalized via Equity or through the sale of Debts ownership in the llc itself.

To learn more about equity from the given link:

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6 0
2 years ago
What does the phrase "on the market" describe? A. Plans for making commodities available for sale or trade B. Ways producers com
vladimir2022 [97]

Answer:

<u>A. Plans for making commodities available for sale or trade</u>

Explanation:

  • As a market is a place where all the goods and commodities are brought for sale the products and services that exist in the market or on the market are those that brought for the consumption by the people.
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4 0
3 years ago
Read 2 more answers
Bond Yield and After-Tax Cost of Debt A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 y
Rzqust [24]

Answer:

9.73%

Explanation:

For computing the after tax cost of debt first we have to determine the cost of debt by applying the RATE formula i.e. to be shown in the attachment below:

Given that,  

Present value = $604.42

Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 20 years × 2 = 40 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 6.95% × 2 = 13.9%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 13.9% × ( 1 - 0.30)

= 9.73%

8 0
3 years ago
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