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
Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte
goldenfox [79]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

3 0
2 years ago
Read 2 more answers
A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s
alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0
3 years ago
Disinflation can be explained by the phillips curve analysis as resulting from a situation where the actual rate of inflation is
lakkis [162]

According to the Phillips curve analysis, disinflation happens when the actual rate of inflation is initially lower than the expected rate, temporarily raising the unemployment rate. However, as nominal wages decline, the unemployment rate will fall to its natural level and the actual and expected rates of inflation will balance out.

Disinflation refers to occurrences where the inflation rate has temporarily slowed and is used to indicate situations where it has only slightly decreased. Disinflation refers to the rate of change in the rate of inflation, as opposed to inflation and deflation, which talk about the direction of prices.

To learn more about Disinflation here

brainly.com/question/14189184

#SPJ4

5 0
1 year ago
Jessica owns a small trading company. The company buys small vending machines from a manufacturer and sells them to the a retail
djyliett [7]
The anwser is c just took the test
7 0
3 years ago
Diego feels he has achieved some measure of respect as a cosmetic surgeon. Now, Diego focuses on being the best he can be. Which
amm1812

Diego is trying to focus and meet his self-actualization needs.

<h3>What is Maslow's Hierarchy of Needs?</h3>

Abraham Maslow's theory of Hierarchical needs explains that people are driven to meet fundamental wants before moving on to more complex requirements.

His theory emphasizes five hierarchical needs, these are:

  • Physiological needs
  • Security and safety needs
  • Social Needs
  • Esteem Needs
  • Self Actualization needs

Therefore, based on the fact that Diego is concerned about his own personal growth and focusing on his career, we can conclude that Diego is trying to focus and meet his self-actualization needs.

Learn more about Maslow's Hierarchy of Needs here:

brainly.com/question/1785981

4 0
2 years ago
Other questions:
  • When selecting stock, some financial experts recommend to _____.
    9·1 answer
  • Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over.
    15·1 answer
  • SPINX, INC. Statement of Earnings For the Year Ended December 31, CURRENT YEAR Net sales $ 4,395,253 Costs and expenses: Cost of
    9·1 answer
  • The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit v
    7·1 answer
  • You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of treasury bills that pay 5% a
    10·1 answer
  • It is the ______ of accounting professionals to use professional and moral judgment while dealing with clients or organizations.
    5·1 answer
  • An inmate escapes from the county prison. there is a $500 reward offered for any information leading to the capture of the inmat
    6·1 answer
  • HELP!!!!! Will mark as brainliest!!
    12·2 answers
  • PLS HURRY I AM ON A TIMER! what types of people can you learn from on Twitter?
    10·2 answers
  • The range of an area where users can access the Internet via high-frequency radio signals transmitting an Internet signal from a
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!