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Slav-nsk [51]
3 years ago
14

When a company purchases another company and the purchase price is greater than the fair value of the net assets acquired, this

excess is referred to as ______.
Business
1 answer:
34kurt3 years ago
6 0

Answer:

Goodwill

Explanation:

Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.

When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill

The fair value of the net asset is come from subtracting the

= Company assets - company liabilities

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Comparing seller invoices to stock fees, obtaining decreased price or market facts, and recalculating deprecation schedules relate to the assertion: of valuation and allocation.

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5 0
1 year ago
The minimum wage in 2008 was $6.55 cents until july 2008 when it was raised to $7.25. if the minimum wage in june was below the
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<span>The answer in the blank is that employment of low-skilled workers increased in July. This is because the rate of the minimum wage increased by July compared to that of June. So there will be more employment process due to the increase of the salary, because more skilled workers wants to grab the opportunity of the increased salary.</span>
7 0
3 years ago
Deborah Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $2,100,000 an
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Answer:

The amount of the adjusting entry for bad debts at December 31 is C. $91,000

Explanation:

Adjustment entry is made on changes on the amount of provision for doubtful debts.

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Decreases in amount of  provision for doubtful debts decreases the expenses in income statement.

Allowance for Doubtful Accounts Balance  $35,000 (cr)

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3 years ago
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