Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
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Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
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b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
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The answer is $100. The consumer surplus is $100 because that is the difference between what Anna has set as her ceiling for the purchase of the bicycle, $500, and then subtracted by the amount that she actually does pay, $400, that difference is what is referred to as consumer surplus. What the consumer is mentally committed to paying minus what the consumer actually pays.
Answer:
$6,000
Explanation:
A deductible is the amount Conor has to pay before his medical bills and prescriptions start getting coverage from his insurance.
Step 1: 10,000 - 2,000 = 8,000
A co-pay is a fixed amount the insured has to pay for certain medical services.
Step 2: 20% of 8,000 or 0.20 times 8,000 = 1,600
Step 3: add $2,000 (the deductible you have to pay) and $1,600 (the co-pay)
Total amount that Conor will have to pay for the hospital: $3,600
If this is true or false, then its true.
Answer:
Coordination Problem
Explanation:
Below is the given values:
Average total cost of producing 10000 chairs = $300
Average total cost of producing 11000 chairs = $325
The coordination problem arises when an increase in total output increases the average total cost due to the non-coordination of the inputs used in the production process. Therefore coordination is correct answer.
