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tester [92]
3 years ago
13

Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $19 million. The fair value of Midwest's assets

is $14.3 million. The fair value of Midwest's liabilities is $2.5 million. Calculate the amount paid for goodwill. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Business
1 answer:
shutvik [7]3 years ago
4 0

Answer:

$7.2 million

Explanation:

For computing the amount paid for the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = Fair value of Midwest's assets - fair value of Midwest's liabilities

= $14.3 million - $2.5 million

= $11.8 million

And, the acquisition price of the outstanding stock is $19 million

So, the goodwill would be  

= $19 million - $11.8 million  

= $7.2 million

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Select the best (most informative) answer. present value involves _____ whereas future value involves _____.
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2 years ago
Después de la pandemia y con la reactivaciòn de la economía peruana, ¿Qué oportunidades tienen los productores agrícolas de obte
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Answer:

The answer to that question has a lot of unknown factors included. We can assume two different scenarios:

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In Spanish:

Esta pregunta incluye muchos por si acasos que por el momento son totalmente inciertos. Podemos asumir 2 escenarios mundiales diferentes:

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7 0
2 years ago
Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has t
Vesnalui [34]

Answer:

Total Service Costs   Molding :350031.22 Painting:  205081. 46  

Explanation:

Given Data

<u><em>Model, Inc.</em></u>

<u><em>                                          Service </em></u>

<u><em>                    Administration,      Accounting,       Maintenance</em></u>

<u><em></em></u>

Costs                $269,000,         $402,000,         $199,000,

Building area     12,000            63,000                   69,300

Employees            44                     14                       22            

Equipment value

(in thousands)       $ 177.00        $ 236.00          $ 17.50      

                                <u>   Production </u>

<u>                         Molding                  Painting </u>

Costs

Direct Materials $242,500         $211,000

Direct Labor      $327,500           $219,000

Overheads        $105,000           $82,500

Building area       441,000            56,700

Employees           66                      88

Equipment value

(in thousands)      $ 118.00         $ 59.00

<em><u>First we find the activity rates for each cost using total cost driver except self usage</u></em>

1) Maintenance  $ 199,000

Equipment Value= 177 + 236+ 118+ 59=  590 ( in thousands)  ( all but maintenance itself )

Maintenance per equipment = 199,000/590,000=  0.3373 per equipment

2) Accounting,= $402,000,

Employees=44  + 22 + 66 + 88 =  220

Accounting per Employee=  $402,000,/220=  1827.27 per Employee

3) Administration= $269,000

Building area  =63,000 +69,300 +441,000+ 56,700= 630,000

Administration per square footage= 269,000/ 630,000= 0.4269= 0.43 per square

<u><em>Then we multiply the rates to find the service costs allocated.</em></u>

 Production

                        Molding                                     Painting

Costs

Direct Materials $242,500                               $211,000

Direct Labor      $327,500                                $219,000

Overheads        $105,000                                $82,500

<u>Service Cost Allocated</u>

Building area       0.43*441,000                   0.43* 56,700

                             = 189630                             =24381

Employees           66* 1827.27                      88 *1827.27

                            = 120599.82                      = 160799.76

Equipment value

(in thousands)      $ 118.00* 0.3373               $ 59.00 *0.3373

<u>                                  </u><u>= 39801.4                          = 19900.7               </u>

<u>Total Service Costs  350031.22                           205081. 46        </u>

<u>Total  Costs              1025031.22                           717581. 46    </u>

<u />

6 0
3 years ago
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