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Rom4ik [11]
3 years ago
5

During 2021, Blossom Company purchased the net assets of Ayayai Corporation for $2178000. On the date of the transaction, Ayayai

had $594000 of liabilities. The fair value of Ayayai's assets when acquired were as follows: Current assets $1069200 Noncurrent assets 2494800 $3564000 How should the $792000 difference between the fair value of the net assets acquired ($2970000) and the cost ($2178000) be accounted for by Blossom
Business
1 answer:
Evgesh-ka [11]3 years ago
6 0

Answer:

When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.

the net fair market value of assets = $1,069,200 + $2,494,800 - $594,000 = $2,970,000

gain = fair market value - purchase price = $2,970,000 - $2,178,000 = $792,000

Another way to refer to this type of situation is a bargain purchase.

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At the end of the period, the balance left in the factory overhead account is equal to the
katrin2010 [14]

Answer:

d.total factory overhead cost variance.

Explanation:

In manufacturing accounting, at the beginning of the period, manufacturing overheads (i.e. costs other than Direct Material and Direct Labor) has been applied to Work-in-process using a predetermined overhead rate. At the end of the period, if the manufacturing overhead account shows a debit balance, that signifies that overhead has been under-applied (i.e. the manufacturing overhead cost applied to work in process is <u>less </u>than the actual manufacturing overhead cost for the period), and contrariwise if the manufacturing overhead account shows a credit balance, it means the overhead is over-applied (i.e. the manufacturing overhead cost applied to work in process is <u>more </u>than the actual manufacturing overhead cost for the period). In any case this balance warrants an adjustment to close out the books, by transferring it to the cost of goods sold account.

6 0
2 years ago
Choose all that apply.
lana [24]
I would recommend a savings account
7 0
3 years ago
Teams have better communication than other workers because they get to ______. A. Know each other better b. Attend communication
nadya68 [22]

A. Know each other better

Team refers to a group of people who come together to carry out interdependent task whilst also accomplishing a common mission or specific objective.

Team comprises individuals or employees who have complementary skills, knowledge and experience needed to execute a project successfully.

When a person is working in a team, he or she has the privilege of interacting with other team members hence create performance and strengthen the level of relationship amongst them.

It therefore means that teams have better communication than other workers because they get to know each other better in the course carrying out their duties.

learn more at : brainly.com/question/19724748

7 0
2 years ago
Salim files a case agaisnt nina for nonpayments of dues.before the trial. nina is examined under oath in the presense of salim's
aleksley [76]

Answer:

A) deposition

Explanation:

A witness or a party's deposition takes place before the actual trial starts, during discovery (or the investigation stage). During the deposition, the party or witness must answer the questions of the other party's attorney. Those questions are answered under oath, which means that lying is considered perjury and the party or the witness can be prosecuted for it.

3 0
3 years ago
Vijay Company reports the following information regarding its production costs. Direct materials $9.60 per unit Direct labor $19
solong [7]

Answer:

Unitary cost= $46.4 per unit

Explanation:

Giving the following information:

Direct materials $9.60 per unit

Direct labor $19.60 per unit

Overhead costs for the year:

Variable overhead $9.60 per unit

Fixed overhead $121,600

Units produced 16,000 units

Under absorption costing, the fixed overhead is allocated to the cost of the product. Therefore, we need to calculate the unitary fixed overhead.

Unitary fixed overhead= 121,600/16,000= $7.6

Now, we can calculate the unitary cost of production:

Unitary cost= direct material + direct labor + total overhead

Unitary cost= 9.6 + 19.6 + 9.6 + 7.6= $46.4 per unit

6 0
3 years ago
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