1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nostrana [21]
2 years ago
8

In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th

e fair value of the net identifiable assets acquired exceeds the fair value of the consideration given. The excess should be reported as a ___________.
Business
1 answer:
spin [16.1K]2 years ago
4 0

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

You might be interested in
Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e
anygoal [31]

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier

Substituting the values from the question in the DuPont identity we get,

0.1964 = 0.051 * 2.3 * Equity Multiplier

Equity Multiplier = \frac{0.1964}{0.051*2.3}

Equity Multiplier = 1.674339301&#10;

Equity Multiplier = \frac{Total Assets }{Equity}

So,

\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}

Substituting the value of equity multiplier in the formula above we get,

\frac{Equity}{Total Assets} = 0.597250509

Now,

\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1

So,

\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}

\frac{Debt }{Total Assets} = 1 - 0.597250509&#10;

\frac{Debt }{Total Assets} = 0.402749491&#10;

Now that we have the proportions of debt and equity to total assets, we can  find the Debt Equity (D/E) ratio as follows:

\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}

Substituting the values we get,

\frac{D}{E} = \frac{0.402749491&#10;}{0.597250509&#10;}

\frac{D}{E} = 0.674339301&#10;

3 0
3 years ago
Which professional helps individuals and families minimize risk? A. real estate broker B. insurance agent C. personal finance ma
Aleks04 [339]
B. Insurance agent.......
4 0
3 years ago
Read 2 more answers
What does an increase in the consumer price index indicate?
erastova [34]
It indicates signs of inflation in the economy
3 0
3 years ago
Polani was giving ahmed directions to her house. She told him to turn right at the gas station, and then go straight for three l
postnew [5]

Based on the fact that Polani was using the gas station, lights, and the fast-food restaurants, the factor used to help Ahmed recall the directions were landmarks.

<h3>How to direct with landmarks?</h3>

Directing a person with landmarks is one of the best and most effective ways to direct people. This is because landmarks are easily noticeable and so can be used as markers to help a person to navigate across town and reach their destination.

Polani used the landmarks, the gas station, street lights, and the fast-food restaurant. Getting to each of these places is easy because it is noticeable so Polani used landmarks to help Ahmed.

Find out more on giving directions at brainly.com/question/28108225

#SPJ1

4 0
1 year ago
compare how the total amounts of e-waste generated, e-waste disposed of as trash, and e-waste recycled have changed over time. b
ArbitrLikvidat [17]

The overall amount of e-waste generated steadied or slightly dropped, while the amount of e-waste recycled continuously grew.

<h3>What is meant by e-waste?</h3>

Electronic garbage, sometimes known as e-waste, refers to outdated electrical or electronic equipment. E-waste includes used electronics that are intended for recycling through material recovery, refurbishment, reuse, resale, or disposal.

Electronic items that are nearing the end of their "useful life" are sometimes referred to as "e-waste." Common electronic products include computers, televisions, VCRs, stereos, copiers, and fax machines. Numerous of these items can be recycled, repaired, or reused.

Between 2010 and 2013, the overall amount of e-waste generated steadied or slightly dropped, while the amount of e-waste recycled continuously grew.

To learn more about e-waste refer to:

brainly.com/question/15549433

#SPJ4

6 0
1 year ago
Other questions:
  • ?if a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if
    10·1 answer
  • The most preferred technique for determining how much life insurance coverage is needed for an individual is:
    13·1 answer
  • Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $
    6·1 answer
  • Ed needs to take out a loan for $7,000 to purchase a car. His bank has offered him a loan at 10.0% interest, compounded monthly,
    9·2 answers
  • During global culture training for a group of employees who are being transferred to Egypt, Charmaine, the HR training manager,
    10·1 answer
  • A firm’s management analyzes financial statement’s so that: a. they can get feedback on their investing, financing, and working
    12·1 answer
  • Below, you are provided with four groups of different goods. These goods are differentiated by the number of likely substitutes
    15·1 answer
  • Suppose a company is financed with $20 million of equity and $60 million of debt. That is, the company obtained $20 million from
    9·1 answer
  • The upward slope of the supply curve reflects the:
    5·1 answer
  • T or F #2 ASAP<br> One reason for placing a tariff on imports is to increase imports.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!