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MAXImum [283]
3 years ago
7

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a

nd the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition
Business
1 answer:
Nikolay [14]3 years ago
8 0

Complete question:

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

a. 150,000

b. 250,000

c. 0

d. 120,000

e. 170,000

Answer:

150,000 of goodwill should be attributed to the non-controlling interest at the date of acquisition

Solution:

A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.

Now , Calculate the amount

Cost(PP) - 1,600/0.8 = 2,000

FV - 1,850

GW = 1,850 - 2,000

     = 150,000

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Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respec
Pepsi [2]

Answer:

$33,445.44

Explanation:

The future value of an investment is its worth at a future date if the investment is done at a specific interest rate compounded yearly for certain number of years

It is computed as follows:

FV = PV (1+r)^n

FV = Future Value, PV = present value, r- interest rate, n- number of years

<em>Future value of $7500 after 3 years:</em>

FV = 7500× (1.08)^3 = 9,447.84

<em>Future Value of $9000 after 2 years:</em>

FV = 9000 × (1.08^2) = $10,497.6

<em>Future value of $12,500 after 1 year:</em>

FV = 12500× 1.08 = $13,500

The future value of these cashflows at the end of year 5

= 9,447.8 + 10,497.6 + 13,500

= $33,445.44

7 0
3 years ago
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Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people
Ugo [173]

Answer:

Zumba classes sell all 20 participant spots at a price of $4.50 each. When the instructor raised the prices to $5.50, 10 people attended the class. From the midpoint method, the price elasticity of demand for Zumba is:

0.286

Explanation:

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$90-$55= $35

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8 0
3 years ago
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marishachu [46]
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Anastaziya [24]

The best reason for the reduction in manufacturing jobs is that These jobs are often outsourced to overseas factories.

<h3>Manufacturing trend in developed countries </h3>
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As a result of these jobs being shipped abroad, manufacturing jobs in developed countries are suffering and will decrease in the next few years.

In conclusion, option B is correct.

Find out more on manufacturing jobs at brainly.com/question/25553251.

7 0
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<h3>What is Financial Projections?</h3>

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Financial predictions are an important tool for business planning for a variety of reasons.

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