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
Olin [163]
2 years ago
14

Nebulus Corporation owns 30% of the voting stock of Suite Company. It reports the 30% interest as an equity method investment, w

ith a current carrying value of $32,000,000 and a market value of $45,000,000. Nebulus acquires the remaining 70% interest for $120,000,000 in cash. At that time, the fair value of Suite's identifiable net assets was $125,000,000, and Suite's book value was $45,000,000.As part of the acquisition entry, Nebulus records:A) A gain of $13,000,000, in income.B) Goodwill of 27,000,000.C) Goodwill of $107,000,000.D) A gain of $5,000,000, in income.
Business
1 answer:
Tanzania [10]2 years ago
6 0

Answer:

B) Goodwill of 27,000,000.

Explanation:

Nebulus's original 30% investment on Suite had a carrying value of $32,000,000 + $120,000,000 more paid in cash for the remaining 70% = $152,000,000

The fair market value of Suite's total assets = $125,000,000

So that means that Nebulus must record Suite's assets at fair market value, and the remaining $27,000,000 million must be recorded as goodwill.

Goodwill = total purchase price of a company - fair market value of all the assets belonging to that company = $152,000,000 - $125,000,000 = $27,000,000

You might be interested in
Team building is considered part of which stage of team development
faltersainse [42]
Let's see there's forming, storming, norming and performing. I would use teambuilding during forming to limit the amount of storming in the next stage.
3 0
3 years ago
The income received by a country's people from all sources in a given time period
AfilCa [17]

The correct answer is personal income.

A country’s personal income is the amount of income received by all of the country’s people in a given time period.

7 0
3 years ago
Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its o
Kisachek [45]

Answer:

the available options for the question are,

A. Cash Cr. $18, Food Revenue Dr. $18,

B. Cash Dr. $18, Food Revenue Dr. $18

C.Cash Dr. $18, Food Revenue Cr. $18

D. Cash Cr. $18, Food Revenue Cr. $18

and the correct answer is C.Cash Dr. $18, Food Revenue Cr. $18

Explanation:

the answer is simple. once they implement the accounting system, all the transaction will have at least a double entry.

when a cash sale is made for $18, this is a revenue stream for the business, while the cash balance of the business increases as well. Revenue account is an income and an increase in income is treated as increase in credit while the cash balance is an asset, and the increase of the asset is treated as a debit.

if you look at options A, B and D, all of these transactions are either mixed up or have both credits or debits which is wrong, because of this, only the answer C is correct.

5 0
3 years ago
Can I have some help?
Kisachek [45]

Answer:

b

Explanation:

8 0
2 years ago
If your payment history counts for 35% of your credit score and the type of credit you use accounts for 10% of your score, which
ivolga24 [154]
You'll want to establish a clear payment history, your payment history, or also known as your payment performance is the record you have by paying your bills on time, or not.. so yeah just having a clear payment history will help you out alotttt
6 0
2 years ago
Other questions:
  • Customer intimacy is the process whereby a business learns as much as possible about its customers to better anticipate and addr
    9·1 answer
  • As specialization increases in an economy, businesses tend to experience: a.) an increase in self sufficiency due to businesses
    14·2 answers
  • Malholtra Inc. is considering a project that has the following cash flow and WACC data.
    7·1 answer
  • A research company has conducted an evaluation of European online retailers by asking consumers how well the websites helped the
    14·1 answer
  • Marty has hired a marketing research company to bring together a small group of soft drink consumers and get feedback on the thr
    5·1 answer
  • Hyo runs an ice cream shop with her family. They just started letting customers fax in their ice cream orders. Sometimes the wri
    11·1 answer
  • Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance
    7·1 answer
  • Which of the following is true of accrual basis accounting and cash basis​ accounting? A. Cash basis accounting records all tran
    7·2 answers
  • Item 4 A coupon bond that pays interest annually has a par value of $1,000, matures in seven years, and has a yield to maturity
    11·1 answer
  • Charging a license fee for access to a fishery will ... a)              result in no change in total harvest levels. b)         
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!