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babunello [35]
3 years ago
12

In a transaction accounted for using the acquisition method where consideration transferred exceeds book value of the acquired c

ompany, which statement is true for the acquiring company with regard to its investment?
a) Net assets of the acquired company are revalued to their fair values and any excess of consideration transferred over fair value of net assets acquired is allocated to goodwill

b) Net assets of the acquired company are maintained at book value and any excess of consideration transferred over book value of net assets acquired is allocated to goodwill.

c) Acquired assets are revalued to their fair values. Acquired liabilities are maintained at book value. Excess is allocated to goodwill.
Business
1 answer:
harina [27]3 years ago
8 0

Answer:

The answer is A.

Explanation:

Net assets of the acquired company are revalued to their fair values and any excess of consideration transferred over fair value of net assets acquired is allocated to goodwill is correct.

This is also the calculation of goodwill. Goodwill is calculated by subtracting fair value of net identifiable net asset o the company that is about to be acquired from its purchase price. If purchase price is higher than net assets of the acquired, then it is a positive goodwill but if the purchase price is lesser than the net assets of the acquired, it is a negative goodwill.

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WINSTONCH [101]

Answer:

Explanation:

N = 4 (5-year bond - 1 year (ago))*2 = 8

I% = YMT= 8/2 = 4

PMT = (1,000)(.07) = 70/2 = 35

FV=1,000

Calculating PV, PV=966.34

6 0
3 years ago
It is important to cook food to high enough temperatures so that a) the possibility of cross-contamination is greatly reduced. b
Feliz [49]

Answer:

d) pathogens are reduced and illness is prevented.

Explanation:

It is important to cook food to high enough temperatures so that pathogens are reduced and illness is prevented. Pathogens are organisms such as virus, fungi, bacteria, protozoa, worms that causes diseases to its host.

These pathogens are usually destroyed by heat, so it's necessary and important to properly cook food to a high temperature by grilling, boiling, frying, roasting and baking.

Furthermore, a hot-holding unit can be used to store food in order to reduce pathogens.

6 0
3 years ago
Chuck has AGI of $71,600 and has made the following payments
kodGreya [7K]

Answer: $4,690

Explanation:

From the above, Chuck can include the following with his itemized deductions,

County Real Estate Tax,

School District Tax on Realty,

State Income Tax estimated Payments and

State income tax withholding.

Calculating the above,

= 950 + 670 + 1,010 + 2,060

= $4,690

the amount of taxes that Chuck can include with his itemized deductions is $4,690.

7 0
3 years ago
How can firms ensure that their code of business ethics is read, understood, believed, remembered, and acted on rather than igno
igomit [66]

Answer: The best way to ensure that your company has read and understand the code of ethics is to establish a policy for employees to read it every year and that at the end of the reading, take a knowledge test with a minimum of 90% to pass.

Explanation: The code of ethics establishes parameters that standardize the behavior of people linked to a company. By conducting the assessment every year you ensure that people refresh the code of ethics. You can also offer tutorials that serve to get the message better before the evaluation and if someone fails the evaluation, that person must repeat it until they qualify at this 90%.

8 0
3 years ago
delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of it
ollegr [7]

Answer:

Annual depreciation for the first year = $15,500

Annual depreciation for the second year = $7,500

Explanation:

Data provided in the question;

Cost of the delivery truck = $31,000

Salvage value = $4,000

Useful life = 4 years

Now,

The Rate of depreciation under declining-balance = 2 × straight-line rate

= 2 × \frac{1}{4}

= 0.5

or

= 0.5 × 100% = 50%

Therefore,

Annual depreciation for the first year = cost of truck × Rate of depreciation

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Annual depreciation for the second year

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= $15,500 × 0.5

= $7,500

5 0
3 years ago
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