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lilavasa [31]
4 years ago
8

A purchaser of the assets of a business must allocate the purchase price to the individual assets in accordance with the written

agreement between the purchaser and the seller. Which of the following assets would be least preferred for purposes of allocating value from the purchaser point of view?
Business
1 answer:
Irina18 [472]4 years ago
4 0

Answer:

The "Goodwill Asset" will be least preferred

Explanation:This is because

All the other assets i.e buildings, equipments, inventory are tangible in nature and can be easily valued in the market and fair value of these assets can be identified in the market.

These assets can be measured on the basis of their physical presence, location of building, present condition of equipment, or per demand of the inventory or obsoleteness etc.

Whereas "Goodwill" is intangible in nature, it is many times "Self generated". Assets by an entity are based on the relationship with the suppliers, creditors, debtors or with their clients or on any other basis. Therefore the valuation of goodwill why the purchaser cannot be done easily and the valuation can prove to be incorrect.

Hence, the purchaser preffers Goodwill the least for the purpose of valuation of assets and it is considered "balancing figure" during this transaction between purchaser and seller.

You might be interested in
The investment a company makes in training employees to perform their duties and redesigning products and processes to improve t
Andre45 [30]

Answer:

True

Explanation:

Prevention Cost is the cost which is incurred to avoid the loss due to defects in the products manufactured, here the cost incurred is as follows:

Training employees that is the benefit from training will be reducing cost and improving quality of the product, therefore, it will be considered as prevention costs.

Further cost incurred for redesigning products and processes will improve the quality of the product and the process therefore this cost can also be considered as prevention costs.

Final Answer

The above statement is true.

4 0
3 years ago
David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agre
Inga [223]

Answer:

The answer is:

The Kincaids can sue David and Sandra Dess because they can be considered intended beneficiaries of the contract between them and Sirva.  

Explanation:

Intended beneficiaries are third parties in a contract that can sue the promisor for breach of contract.

In the contract, David and Sandra agreed to fully disclose all information about the property. Under the terms of the contract, they agreed that Sirva and "other prospective buyers" could rely on their disclosures.

8 0
4 years ago
Just in time inventory involves the following main component:
matrenka [14]

Answer:

"E "

Explanation:

Just in time inventory is an inventory management system where inventory required for production are ordered at the point of production.

This practice helps to maximize profit as investment on inventory carriage and storage are minimized , aiding an improved working capital management.

It is of importance that machine break down is avoided and there is a reliability of man power in order to avoid operation down time when there is a demand.

Also , there must be a solid arrangement with supplier for it to be effective.

6 0
3 years ago
The following information has been provided by New​ Age, Inc.:
N76 [4]

Answer:

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,  

Total manufacturing cost = Direct materials used + direct labor cost + manufacturing overhead  cost

= $10,000 + $25,800 + $19,200

= $55,000

So, the opening work in process inventory would be

$11,200 = Opening work in process + $55,000 - $48,750

So, the opening work in process is

= $4,950

7 0
3 years ago
Please help
Andrew [12]

Answer: It’s research the issues

Explanation:

The other answer is wrong

3 0
3 years ago
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