Answer:
$4,392,000
Explanation:
For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = Asset balance + fair value of land - liabilities balance
= $11,450,000 + $690,000 - $4,890,000
= $7,250,000
And, the acquire value is $11,642,000
So, the goodwill would be
= $11,642,000 - $7,250,000
= $4,392,000
Answer:
Credits are made to Common Stock $30,000 and Paid in capital in excess of Par value $12,000
Explanation:
The journal entry is shown below;
Cash $42,000 (3,000 shares at $14)
To Common Stock $30,000 (3,000 shares at $10)
To Paid in capital in excess of par value $12,000 (3,000 shares at $4)
(Being issuance of the common stock is recorded)
Here cash is debited as it increased the assets and credited the common stock & paid in capital as it also increased the stockholder equity
The price one bicycle is $21
Explanation:
because 100÷10=0.1
and the total is 300$
300-100=20
20+0.1=20
answer is 21
Answer:
5000 partial depreciation
Explanation:
straight line formula is = <u>cost - scrape value</u>
useful life in years
since there is no residual value (scrape value) therefore, we divide <u>100,000 </u>
5
the answer we get 20000 per year depreciation. but the equipment is bought on 1st oct, and if assume that the year ends on Dec, 31 so it is measure for 3 month depreciation which is 5000.
Answer:
The correct option B ,stock price increased proportionately with the dividend increase
Explanation:
To a rational investor, the price tag on a share is given by the expected dividend divided by the investor's rate of return.
To illustrate this further, the increase in dividend in percentage terms is calculated thus:
=($1.48-$1.45)/$1.45=2.07%
The divided has increased by 2.07%
Assuming investor's rate of return is 10%, we can calculate the price of the stock when dividend is $1.45 as well as when it is $1.48
price=$1.45/0.1=$14.5
price=$1.48/0.1=$14.8
The increase in price is computed thus:
(14.8-14.5)/14.5=2.07%
There is no doubt that an increase in dividend of 2.07% brought about the same increase share price ,hence choice of answer.