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3 years ago

G MC Qu. 87 When is a goodwill impairment loss... When is a goodwill impairment loss recognized?

Business

1 answer:

marin [14]3 years ago

6 0

Answer:

Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.

An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.

Explanation:

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Chancellor Ltd. sells an asset with a $2.4 million fair value to Sophie Inc. Sophie agrees to make seven equal payments, each to

sattari [20]

Answer:

The Annual payment to be made is $445,327

Explanation:

The computation of the annual payment is shown below;

As we know that

The Present value of assets = Annual payment to be made × Present value annuity factor (i%,n)

$2,400,000 = Annual payment to be made × Present value annuity factor (7%,7)

$2,400,000 = Annual payment to be made × 5.3893

So,

The Annual payment to be made is $445,327

4 0

3 years ago

Happy Foods and General Grains both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a b

labwork [276]

Answer: introduce more differentiation

Explanation: Product differentiation is a method of using various tactics to make a product stand out from the rest of the similar products sold by a competitor, in an effort to make it more appealing to its customer base. This means differentiating the product so much, that it will make it more attractive for customers to buy. This can be anything from making the product's packaging more aesthetically appealing, including some form of a bonus/gift for purchasing the product (like getting a free toy in each cereal box) etc. In the end by applying product differentiation the one company will increase the customer benefits of purchasing this product from them, hereby gaining a competitive advantage over the other company.

3 0

3 years ago

Keenan owns a retail store. He often receives payments from some of his manufacturers to ensure their products are placed in the

Serjik [45]

Answer: Slotting allowances

Explanation:

The slotting allowances is the term which is used to charge by the manufacturers for the specific products and the services ion the market. It is also known as the slotting fee and the charged allowances is specifically varies or depend upon the specific products and the different marketing conditions.

According to the given question, the slotting allowances is refers as the payment that is made by the producers for ensuring their goods and the services best place.

Therefore, Slotting allowances is the correct answer.

3 0

3 years ago

Cost of Goods Manufactured for a Manufacturing Company

aniked [119]

Answer:

Cost of goods manufactured $ 2567,400

Explanation:

Ethtridge Manufacturing Company

Statement of Cost of Goods Manufactured

For the Month Ended July 31

Direct materials $1,150,000

Direct labor 966,000

Total factory overhead 490,500

Total manufacturing costs $ 2606500

Add July 1 Work in process inventory, 316,400

Cost of Goods Available for manufacture $ 2922,900

Less July 31 Work in process inventory, 355,500

Cost of goods manufactured $ 2567,400

When we add the direct materials. direct labor and FOH we get the total manufacturing costs .

When the total manufacturing costs are added to the opening work in process inventory we get the cost of goods available for manufacture and we get the cost of goods manufactured by subtracting the ending work in process inventory from the cost of goods available for manufacture.

6 0

3 years ago

revorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a

nlexa [21]

Answer:

$9,906 F

Explanation:

Calculation as follows:

Budget Income Statement

Particular $

Revenue (28.4 x 7,000) 198,800

Direct Labor (2.8 x 7,000) (19,600)

Direct Material (10.7 x 7,000) (74,900)

Manufacturing Overheads

(38,000 + [1.5 x 7,000] ) (48,500)

Selling and administrative Expenses

(23,600 + [0.3 x 7,000] ) (25,700)

Net Operating Income 30,100

Actual Income Statement

Particular $

Revenue 205,320

Direct Labor (18,974)

Direct Material (72,252)

Manufacturing Overheads (48,320)

Selling and administrative Expenses (25,768)

Net Operating Income 40,006

Activity variance for net operating income = Net operating income actual - Net operating income budgeted

Activity variance for net operating income = 40,006 - 30,100

Activity variance for net operating income = $9,906 F

8 0

3 years ago