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3 years ago

Goodwill represents the excess of the implied value of an acquired company over the

Business

1 answer:

Paul [167]3 years ago

6 0

Answer: Option A

Explanation: In simple words, goodwill refers to the additional value that an organisation have from its identifiable assets due to its operations over a period of time.

In other words, it can be defined as an intangible asset which an organisation creates over a period of time while establishing the brand image. These assets are not depreciated but are tested for impairment every year. For example brands like apple, Reebok and McDonald have high goodwill in the market which attracts customers towards them

Thus, from the above we can conclude that the correct option is A.

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A sixminusmonthnote receivable for $ 9 comma 000at 14%,dated October 1, 2020, has accrued interest revenue of ________ as of

blsea [12.9K]

Answer: $315

Explanation:

The following information can be gotten from the question:

Amount = $9000

Rate = 14%

The receivable was held from October to December. This means it was shelf for 3 months.

Therefore, the accrued interest revenue will be:

= $9000 × 14% × (3/12)

= $9000 × (14/100) × (1/4)

= $9000 × 0.14 × 0.25

= $315

The accrued interest is $315

7 0

3 years ago

Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes

creativ13 [48]

Answer:

Exclusive distribution

Explanation:

Exclusive distribution is defined as an agreement between a producer and retailer that gives the exclusive right to a retailer to distribute the products of a supplier within a given geographical location. Only one distributor is used by the supplier within a given area.

In the secanrio given Giant Beanstalk a company that processes and cans vegetables, recieves raw materials from over 80 companies. It only gives distribution rights to Greenleaf a grocery chain with 38 stores in the country.

5 0

3 years ago

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon

nlexa [21]

Answer:

Cash proceeds is $37,702,607.23

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36

premium amortized=$214,869.64

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

=$1,874,386.88

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2

=$1,885,130.362

Bond expense for the first payment= 37,487,737.59 *10%/2

=$ 1,874,386.88

First year bond interest expense= 1,874,386.88+1,885,130.362

=$ 3,759,517.24

Find attached schedule in addition

Download xlsx

4 0

3 years ago

A firm estimates its average total cost at 90 units of output to be $15. If the firm can sell all of its output at a market pric

SSSSS [86.1K]

Answer:

435

Explanation:

5(90)=450-15=435

8 0

2 years ago

Due to the credit crunch that developed during the Great Recession, many small businesses found that __________ were more willin

mixer [17]

Answer:

The correct answer is letter "D": smaller, community banks.

Explanation:

The Great Recession is the economic fall that occurred between 2007 and 2009 as a result of the housing bubble burst in the U.S. During this period many well-known firms such as Chrysler, General Motors, and Lehman Brothers filed for bankruptcy. However, not all the business experienced a downturn.

A study conducted by the Federal Reserve Bank of St. Louis (2013) indicates that 417 banks and thrift institutions failed between 2006 and 2011 but 702 small community banks reported total assets of around $10 billion by allowing individuals to benefit from loans. Banks and thrift institutions were too conservative in loans during the Great Recession which was interpreted in lower revenues.

3 0

3 years ago