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pantera1 [17]
3 years ago
8

Annapolis Company was recently sold for $470,000. Annapolis had assets & liabilities appraised at the time of the sale in th

e amounts of:ItemAmountAccounts Receivable assumed by buyer $135,000Inventory $275,000Property, Plant & Equipment (net) $500,000Notes Payable assumed by buyer $655,000Using this information, how much should be recorded as Goodwill for this transaction?
Business
1 answer:
MissTica3 years ago
6 0

Answer:

$215,000

Explanation:

Goodwill is the excess of purchase consideration over the net asset of a company. It is an intangible asset

Good will = Purchase consideration - net asset

Net assets is the difference between the company's assets and its liabilities.

Net asset = $135,000 + $275,000 + $500,000 - $655,000

= $255,000

Goodwill = $470,000 - $255,000

= $215,000

Goodwill for this transaction is $215,000.

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In 2012, Teller Company sold 3,000 units at $300 each. Variable expenses were $210per unit, and fixed expenses were $120,000. Th
katrin [286]

Answer:

Teller's break-even point in sales dollars for 2012 is $400,000

Explanation:

The formula to compute the break even point in dollars is shown below:

Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)

where,

Fixed expense is $120,000

And, the contribution ratio equals to

= (Contribution per unit)  ÷ (sales per unit) × 100

where,

Contribution is = Selling price - variable cost per unit

                        = $300 - $210

                        = $90 per unit

Now put the values to the above formula

So, the ratio would be

= ($90 per unit) ÷ ($300 per unit) × 100

= 30%

Now put the values to the above formula

So, the value would be

= $120,000 ÷ 30%

= $400,000

4 0
3 years ago
Which of the following statements is most correct?(a) The primary test of feasibility in a reorganization is whether every claim
ss7ja [257]

Answer:

The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.

Explanation:

Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.

<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>

5 0
3 years ago
The interest rate for this lease is 11%. the payments are due on december 31 of each year. the first payment was made on decembe
Artist 52 [7]
So what is the question? This is just a statement.
4 0
3 years ago
Which of the following best represents the pricing behavior of firms in a monopolistically competitive industry?
allochka39001 [22]

Answer:

The correct answer is option B.

Explanation:

A monopolistic firm is characterized by a large number of buyers and sellers in the market producing differentiated products which are close substitutes, there are relatively easier entry and exit in the market.  

In the given question, Teen Angle Hardware is looking for a niche or a slightly differentiated product to sell to teenagers. But is able to earn only a normal profit because there is a large number of firms in the market. And new firms can enter the market in the long run. So, this firm is an example of a monopolistic firm.  

3 0
3 years ago
Which of the following is not a key component of the merger model we walked through in the course?
Bas_tet [7]

Answer:

Gathering publicly available comparable company information

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An accretion/dilution and sensitivity analysis

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