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dsp73
3 years ago
14

Johan Co. has an intangible asset, which it estimates will have a useful life of 10 years, while Abco Co. has goodwill, which ha

s an indefinite life. Which company should report amortization in its financial statements
Business
1 answer:
Marrrta [24]3 years ago
5 0

Answer:

Johan Co.

Explanation:

Since in the question it is given that the Johan Co. has an intangible asset and we already know that on an intangible asset, the amortization expense is charged whereas on the other side the Abco Co has goodwill on which the impairment is charged

So, in the given scenario, the amortization should be reported on Johan Co financial statements only

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You are a cook at a restaurant. you are required to conduct a food inventory at the end of every week. you notice that there are
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Answer: 150

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3 years ago
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7 0
3 years ago
Larry comes to your office to file his 2020 tax return and tells you that he never received an Economic Impact Payment (EIP) dur
11111nata11111 [884]

Incomplete question. The options:

a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

b. File Form 14039, Identity Theft Affidavit, with the IRS.

c. Contact the Farm Housing Administration.

d. Contact the bank that received the deposit and ask them to redirect the funds to him.

<u>Answer:</u>

<u>a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.</u>

<u>Explanation:</u>

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4 0
3 years ago
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after whi
Greeley [361]

Answer:

option b is correct

current stock price is $42.64

Explanation:

given data

dividend = $1.75

growth rate = 25% for 2 year

growth rate 1 = 6%

required return 2 = 12%

to find out

current stock price

solution

we will find here first stock price after 2 year that is

stock price = cash flow at 2 year end × ( 1+rate ) / ( rate 2 - rate1 )    ..................1

so here  cash flow at 2 year end = 1.75×1.25 = 2.1875

2.1875 × 1.25 = 2.734

stock price = 2.734  × ( 1+ 0.06 ) / ( 0.12 - 0.06 )  

stock price = 48.30

so stock price at 0.12 return

= cash flow at 1 year / ( 1+ rate 2 ) + cash flow at 2 year / ( 1+ rate 2 )² + stock price / ( 1+ rate 2 )²

= 2.1875 / ( 1+ 0.12 ) +  2.734 / ( 1+ 0.12 )² + 48.30 / ( 1+ 0.12 )²

= $42.64

so option b is correct

current stock price is $42.64

8 0
3 years ago
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