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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

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Answer:

B) Subtract them from the bank balance.

Explanation:

When you are adjusting your bank statement you must subtract any outstanding checks and add any deposits in transit.

In this case, the checks that were written at the end of December will probably be cashed during the next months, but the company must adjust their bank balance because they know that the checks will eventually be cashed, sooner or later.

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2 years ago
The law of supply indicates that, other things equal, Multiple Choice producers will offer more of a product at high prices than
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The law of supply generally asserts that the producers will offer more of a product at high prices than at low prices.

<h3>What does law of supply states?</h3>

The economic law states the higher the price, the higher the quantity demanded; because the sellers get more profit when the price is higher, this encourages the producer to produce at high price.

Therefore, the Option A is correct.

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7 0
1 year ago
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2 years ago
At the end of each year, Carl and Linda Munson will deposit $2,100 into a 401k retirement account. Find the amount they will hav
gulaghasi [49]

Answer:

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Explanation:

The compounding formula would be used here, which is as under:

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Here

P is the periodic payments of $2,100

n is the number of periodic payments made which is once in a year and total of 10 in 10 years. So n = 10 number of periodic payments.

r is the annual interest rate which is 8%

By putting this value in the equation, we have:

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