1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lilavasa [31]
3 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]3 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
Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50 each. The total number of trans
melamori03 [73]

Answer:

The range of possible transfer is $ 3.25 to $ 3.50

Explanation:

Data provided:

The purchasing cost of the transistor = $ 3.50

The total number of transistors needed = 8,000

The production cost of the transistor = $ 4.00

The included variable cost = $ 3.25

The included fixed cost = $ 0.75

Now,

the fixed cost cannot be altered, thus it will be there

hence,

the variable cost will be the factor that will evaluate the decision i.e $ 3.25

therefore, the <u>range of possible transfer is $ 3.25 to $ 3.50</u>

3 0
2 years ago
When direct labor employees contribute to the production process, the cost of their labor is recorded by debiting: O Wages Expen
lutik1710 [3]

Answer:

The correct answer is letter "C": Work in Process Inventory.

Explanation:

Work in Process Inventory is an asset in the company's Balance Sheet. It represents the accumulated cost of unfinished goods that are currently in the manufacturing process. Companies that manufacture large or customer-made items typically use a work in progress inventory system to record labor, raw material, and overhead.

6 0
3 years ago
Jackson motors tells sue, a consumer, that bliss automobiles are made with metal bodies when they are in fact made of fiberglass
Step2247 [10]

Jackson motors tells sue, a consumer, that bliss automobiles are made with metal bodies when they are in fact made of fiberglass. This would be considered a fraudulent misrepresentation.

Under contract law, a plaintiff can recover compensatory damages against any defendant when the court finds that the defendant has committed  a fraudulent misrepresentation. Courts will  find that a defendant has committed a fraudulent misrepresentation when following factors have been met:

a representation was made by the defendant, the representation  which was made was false

that when it is made, the defendant knew that the representation made by him was false.

that the fraudulent misrepresentation was made with the intention so that the plaintiff rely on it.

To know more about fraudulent misrepresentation here:

brainly.com/question/13808699

#SPJ4

8 0
1 year ago
Real income can be determined by:
nlexa [21]

Answer:

The answer is D. Deflating nominal income for inflation.

Explanation:

Real income is how much money an individual or entity makes after accounting for inflation.  it is the income of an individual or a nation after adjusting inflation. It is calculated by dividing nominal income by the price level.

Hence we can say real income is determined by Deflating nominal income for inflation

7 0
3 years ago
A Level 2 topic in a Word outline will be used in PowerPoint to create a
yan [13]

The level 2 topic would become the first level bullet item. (OPTION A)

Reason: The level 1 would become the slide titles and the level 2 would become the first level bullet items in the slide and the level 3 would become sub bullets or the second level bullet items and so on

So to conclude, the level 2 would become first level bullet item

8 0
3 years ago
Other questions:
  • Philippe wants to make sure of the success of his new doggy day care, PAWS, by employing the steps in the basic planning process
    10·1 answer
  • Marianna voluntarily gives up her lunch hour to help her colleague who is struggling to finalize an important report. This is an
    10·2 answers
  • Which of the following is not a characteristic of a corporation?
    8·2 answers
  • You can do financial transactions through mobile banking using a A.Smartphone B. Home phone C.Smart Card D.Computer
    15·1 answer
  • Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
    11·1 answer
  • In the competitive sports drink market, Gatorade pays very close attention to the activities of Powerade, a major __________ com
    9·1 answer
  • Mandy Feng employs Jay Johnson at a salary of $35,000 a year. Feng is subject to employer Social Security taxes at a rate of 6.2
    10·1 answer
  • Niles Industries is a merchandising company. It currently holds $6,000 in consignment goods for Martin Corporation. In addition,
    15·1 answer
  • The unit rate for 63 meters in 36 minutes
    11·1 answer
  • What is a speech given to another person or group of people to present information or research about a topic?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!