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
Fynjy0 [20]
3 years ago
6

Orioles Company bought Special Products Division in 2017 and appropriately recorded $741,000 of goodwill related to the purchase

. On December 31, 2018, the fair value of Special Products Division is $5,600,000 and it is carried on Oriole’s books for a total of $4,700,000, including the goodwill. An analysis of Special Products Division’s assets indicates that goodwill of $595,000 exists on December 31, 2018. What goodwill impairment should be recognized by Orioles in 2018?
Business
1 answer:
goldfiish [28.3K]3 years ago
4 0

Answer:

No goodwill impairment should be recognized by Orioles in 2018

Explanation:

Data provided in the question:

Goodwill related to the purchase = $741,000

Fair value of Special Products Division = $5,600,000

Goodwill existing on December 31, 2018 = $595,000

Now,

Here, the fair value of division including the goodwill i.e $5,600,000 is lower than the fair value of division excluding the goodwill i.e $595,000

Hence,

There will be impairment loss

Hence,

No goodwill impairment should be recognized by Orioles in 2018

You might be interested in
Tinker's cost of goods sold in the year of sale (2019) was $790,000 and 2018 cost of goods sold was $810,000. The inventory at t
gladu [14]

Answer:

91 days

Explanation:

Here, we are to calculate the average number of days it will take to sell its inventory in 2019.

We proceed mathematically as follows;

Inventory turnover=COGS/Average inventory

Average inventory=(192,000 + 202,000)/2=$197,000

hence inventory turnover=(790,000/197,000)= 4.01

hence average days to sell=365/4.01 =91 days (approx)

6 0
3 years ago
Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the
Anna71 [15]

<u>Answer:</u>

Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the globe. These research and development units have lately not been receiving adequate financial support.

(B) Most innovative ideas do not become a successful new product.

This is typically the cause for such a situation.

<u>Explanation:</u>

Whatever that comes to your mind will not necessarily take shape in reality. Success comes to that person who had the perspective of success in their mind and bring their thoughts to reality. Similarly, if we want to build a product for that, the innovative ideas that come to our mind should be applied and from that, the final product achieved will become desirable.  

Nowadays most of the innovative ideas do not become a successful new product thats why the financial supporters are hesitating to invest in any kind of research and development. So that's the reason why the research and development units have lately not been receiving adequate financial supporters.

7 0
2 years ago
explain the factors that makes marketing and important business activity towards economic development of a nation ​
V125BC [204]

Marketing is promoting and selling goods and services. On a national level, it is promoting and selling the outputs or products of one country to another country.

4 0
3 years ago
Which are characteristics of a free market economic system?
oksian1 [2.3K]

Answer:

Jfhfbtj

Explanation:

Jf9fhyl dkknihbe

4 0
2 years ago
Consider a palletizer at a bottling plant that has a fi rst cost of $150,000, operating and maintenance costs of $17,500 per yea
pshichka [43]

Answer:

Annual equivalent cost of the investment = $30,603.43 per annum

Explanation:

<em>Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.</em>

<em>Step 1 </em>

<em>PV of cash flows</em>

PV of first cost =  150,000

<em>PV of annual maintenance cost of $17,500</em>

= 17,500× (1-(1+0.08)^(-30))/0.08

= 197,011.21

<em>PV of salvage value</em>

$25,000 × (1+0.08)^(-30)

= 2,484.43

<em>PV of net total cost </em>

= 197,011.21  +150,000 - 2,484.43

=  344,526.78

Step 2

<em>Determine the annuity factor for 30 years at 8%</em>

(1-(1+0.08)^(-30))/0.08

=11.2577

Step 3

<em>Equivalent annual cost</em>

= 344,526.78 / 11.2577

<em> =$30,603.43</em>

Annual equivalent cost of the investment = $30,603.43 per annum

6 0
3 years ago
Other questions:
  • Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's
    12·1 answer
  • Jorge is considering an investment that will pay $4,650 a year for five years, starting one year from today. What is the maximum
    9·1 answer
  • A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th
    14·2 answers
  • How do scarce resources influence you personally? What impact does this have on your financial management?
    7·2 answers
  • When a company uses the allowance method to measure bad​ debts, ________.
    12·1 answer
  • Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accou
    10·1 answer
  • Barry is the branch manager of a large toy store. He has been given the responsibility to communicate with, coach, and motivate
    8·1 answer
  • Match the measurement bases with its definition. Definition Measurement Bases A. Amount of cash (or equivalent) that would be re
    10·1 answer
  • Sportly, Inc. completed Job No. B14 during 2011. The job cost sheet listed the following: Direct materials $44,000 Direct labor
    9·1 answer
  • When management and supervisors’ treatment of an employee largely determines that employee’s performance. This is an instance of
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!