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
goldfiish [28.3K]
2 years ago
8

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $38,000,000 in cash. T

he book values and fair values of Iceberg’s assets and liabilities were as follows:
Book Value Fair Value
Current assets $ 11,800,000 $ 14,800,000
Property, plant, and equipment 24,000,000 30,000,000
Other assets 2,200,000 3,200,000
Current liabilities 6,600,000 6,600,000
Long-term liabilities 11,400,000 10,400,000
Required:
1. Calculate the amount paid for goodwill.
Business
2 answers:
LenaWriter [7]2 years ago
8 0

Answer: The Goodwill is $7,000,000

Explanation:

$

Purchase price. 38,000,000

Less:

Fair value of asset 48,000,000

Less: Fair value of liabilities 17,000,000

-----------------------

Fair value of net Asset. 31,000,000

---------------------

Goodwill. 7,000,000

-------------------------

Workings

Fair value of Asset = Current Asset + Property, plant and equipment + Other asset

= 14,800,000 + 30,000,000 + 3,200,000

= 48,000,000

Fair value of Liabilities = Current Liability + Long term Liability

= 6,600,000 + 10,400,000

= 17,000,000

galina1969 [7]2 years ago
3 0

Answer:

$7 million

Explanation:

Make Adjustments between the Book Values and the Fair Values

                                             All values are in $Million(s)

                              Book Value      Fair Value         Adjusted

Current Assets         11.8                    14.8                    3

Fixed Assets             24                     30                      6

Other Assets            2.2                     3.2                     1

Current Liabilities    (6.6)                   (6.6)                   (0)

LT Liabilities             (11.4)                  (10.4)                   1

Equity                        20                     31                       11

Now, we would calculate the excess purchase price which is the difference between the $38 million paid by Mainline Produce Corporation in order to acquire Iceberg Lettuce Corporation and the net book value of the assets

Excess purchase price = 38 - 20 = $18 million

Goodwill = Excess purchase price - Fair value adjustments

               = $18 million - $11 million

             = $7 million

The goodwill paid is $7 million

You might be interested in
_______ is part of the new social contract for employees.
lana [24]
I think the answer is e
8 0
3 years ago
Can anyone PLZZZ HELP me with all that plzzz. For 10 POINTS PLZZZ. :(((((
maxonik [38]

LAST QUESTION ANSWER: Federal Trade Commission (FTC)

3 0
3 years ago
Read 2 more answers
Pajama Corp. uses direct materials (fabric, thread, buttons), and direct labor (cutting, sewing labor) to make each pair of paja
RUDIKE [14]

Question Completion:

Estimated manufacturing overhead costs = $156,000

Estimated direct labor cost = $390,000

Estimated direct materials cost = $350,000

Answer:

Pajama Corp.

The cost driver rate = $0.40 per DL cost.

Explanation:

a) Data and Calculations:

Estimated manufacturing overhead costs = $156,000

Estimated direct labor cost = $390,000

Estimated direct materials cost = $350,000

Cost driver rate = $0.40 ($156,000/$390,000)

b) To calculate the cost driver rate, Pajamas Corp. divides the total estimated manufacturing overhead costs by the cost driver (direct labor cost).  This implies that the cost driver rate is the total cost of activity pool divided by its cost driver.  This yields the amount of overhead and indirect costs related to a particular activity.

7 0
2 years ago
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. what
Allushta [10]

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.

Because the budget line FE describes the opportunities available to a worker who has $100 of nonlabor income per week, faces a market wage rate of $10 per hour, and has 110 hours of nonsleeping time to allocate between work and leisure activities This means that the person will choose the level of goods and leisure that lead to the highest possible level of the utility index given the limitations imposed by the budget constraint.  

Leisure is the time when you are free from work or other duties and can relax.

Limitations the act of controlling the size or extent of something the act of limiting something.

Budget is a spending plan based on income and expenses.

To know more about the Leisure here

brainly.com/question/1558173

#SPJ4

3 0
2 years ago
Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead
Juliette [100K]

Answer:

Applied overhead = $380,250

Under applied by = $71,750

Explanation:

Firstly, we know that the formula for overhead rate is ;

Overhead rate = Cost of manufacturing overhead/Cost driver

It also means that to get the predetermined overhead rate, the expected cost will be distributed along a cost driver. Hence;

Labor hours = $396,500/61,000 = $6.5

The above rate would then be applied to the actual labor hour for the period

= $58,500 × $6.5 = $380,250

It therefore means that the applied overhead for the period is $380,250

We will now compare the applied overhead with actual overhead

= $380,250 - $452,000

= ($71,750)

It means that the overhead was under applied as the actual overhead cost was higher.

3 0
2 years ago
Other questions:
  • You are speaking to a group of consumers about ways to use food labels to choose healthy foods in the grocery store. during your
    10·1 answer
  • What is the total Cost of Goods Sold for December 31, 2016 if a manufacturer has the following account balances at December 31,
    11·1 answer
  • Nolivia is a small and poor nation, but its current president has a genuine desire to create more wealth for Nolivia citizens. T
    9·2 answers
  • On June 1, 2021, Wildhorse & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note w
    6·1 answer
  • In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and
    8·1 answer
  • Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of go
    6·1 answer
  • Grayson really wants to get an a on his upcoming math test but he hates studying. He decides to set a goal for himself to study
    13·1 answer
  • Increases in productivity are difficult to achieve if Open Hint for Question 15 in a new window. the task is more physical and t
    13·1 answer
  • For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by
    7·1 answer
  • The term consumer sovereignty means that Multiple Choice government is responsible for protecting consumers' interests. what is
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!