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Vesna [10]
3 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]3 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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When receiving food, you can refuse to accept when if
aliya0001 [1]

Answer:

When receiving food, you can refuse to accept when if it has a foul odor

Explanation:

Such foul odor makes such food to be rejected because of the health implication as well as it does not equate to the money paid for such services rendered.

5 0
3 years ago
Maldovar Company is considering purchasing a new machine to replace a machine purchased one year ago that is not achieving the e
weeeeeb [17]

Answer:

c. Purchase cost of existing machine

Explanation:

Relevant  costs are the incremental costs that can be avoided by avoiding the functional activity with which the costs are associated.

Maintenance costs are relevant as they are directly linked to the use of machinery and as such are incremental with the use. The same is the case with the maintenance costs of the existing machine as they are avoidable if the new machine is purchased.

Expected cost savings would be incremental with the improved new machine. These cost savings thus are relevant.

Resale value of existing machine are also relevant as these would contribute towards the purchase of new machine.

The purchase price of existing machine is irrelevant as the machine cost has already been paid and regardless of purchasing the new machine or not, this cost is not a part of any calculations.

Hope that helps.

4 0
3 years ago
Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations:
Dvinal [7]

Answer:

Absorption costing unit product cost $240

Explanation:

The computation of the absorption costing unit product cost is shown below/;

Direct materials $131  

Direct labor $65  

Variable manufacturing overhead $12

Fixed manufacturing overhead cost $32 ($118,400 ÷ 3,700)

Absorption costing unit product cost $240

3 0
3 years ago
NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $61 and has variable costs of $43. Mo
pochemuha

Answer:

See explanation

Explanation:

We first calculate weighted avg total break even point.

The formula or this is,

Total Break even = Total fixed costs / Weighted avg contribution

Weighted avg contribution = (Contribution of A12 * Weight of A12) + (Contribution of B22 * Weight of B22) + (Contribution of C124 * Weight of C124)

Contribution/ Product =

A12 = 61 - 43 = $18

B22 = 108 - 78 = $30

C124 = 413 - 316 = $97

Thus,

Weighted avg Contribution = (18*0.56) + (30*0.27) + (97*0.17) = $34.67

Total Break even = 249624/ 34.67 = 10085 units in total

Simply multiply total break even units with each products weight to calculate qty for each product to b produced.

A12 = 10085*0.56 = 5647.6 units

B22 = 10085*0.27 = 2722.94 units

C124 = 10085*0.17 = 1714.45 units

as per the sales mix.

We can also calculate how many units of each individual product are required for break even as,

A12 = 249624/18 = 13868 units

B22 = 249624/30 = 8320.8 units

C124 = 249624/97 = 2573.44 units

Hope that helps.

6 0
3 years ago
How does techonology contribute the development of our economy?​
Romashka-Z-Leto [24]

Answer:

it's very important question because ppl focuses on investment they no think its profit or not people also contribute in theory which make advance machinery and helps to go rich the society

3 0
3 years ago
Read 2 more answers
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