Answer:
The goodwill is $1.1 million
Explanation:
In this question, first we have to compute the net asset which is shown below:
Net asset = Total asset - total liabilities
where,
Total asset = Land + building + inventory
= $1.7 million + $3.4 million + $2.2 million
= $7.3 million
And, the total liabilities = long term note payable = $1.5 million
So, the net asset would equal to
= $7.3 million - $1.5 million
= $5.8 million
Now the goodwill equal to
= Cash purchase price - net asset
= $6.8 million - $5.8 million
= $1.0 million
Answer:
The correct answer is the option D: All of the other answers are correct.
Explanation:
To begin with, the fact that it is not reasonable to think in short periods of time when it comes to business management is because basically the short term earnings can be very subjective principally depending on how the company define it, being the accounting and the economic ways of doing it very different and impacting differently as well on the company's way of thinking. Moreover, a company's primary focus must always be on the long run due to the timing that the benefits really impact in the company's accounts and therefore in the pocket of the shareholders or owners.
The stock market declined and it started the great depression
Answer:
25%
Explanation:
The formula to compute the equity in the long margin account is
long market value - debt = equity
Also we know that the account will be at maintenance if the equity is 25% of the long market value
Here 25% represents the equity so 75% would be debit
And, the drop in the market value is of
= $90,000 ÷ 0.75
= $120,000
So at this point, the equity is $30,000
Now the margin percentage is
= $30,000 ÷ $120,000
= 25%
Answer:
reduce the price by ten percent and offer a three-month return policy
Explanation:
Based on the information provided within the question it can be said that the best way to boost the sales in this scenario would be to reduce the price by ten percent and offer a three-month return policy. This marketing tactic is used by many stores when a certain product is not doing so well, and it works well since it gives customers the peace of mind of being able to return the product if they are not satisfied by it, as well as not having to pay full price for the item.
