On August 5, 2021, Blossom Furniture shipped 50 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set
1 answer:
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Answer:
$104,000
Explanation:
Note: <em>The full question is attached as picture below</em>
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Answer:
a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.
Explanation:
To calculate the rate of inflation/deflation, we have to divide by the oldest price index.
The second year, the variation of the price index was:
This means a 9.1% deflation.
The third year, the variation of the price index was:
This means a 4% deflation.