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victus00 [196]
3 years ago
12

In 2019, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the

end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 402 million Book value of Centerpoint’s net assets (excluding goodwill) 352 million Book value of Centerpoint’s net assets (including goodwill) 450 million Required: 1. Determine the amount of the impairment loss. (Negative amount should be indicated by a minus sign. Enter your answer in millions (i.e., 10,000,000 should be entered as 10)).
Business
1 answer:
ohaa [14]3 years ago
6 0

Answer:

$48 million

Explanation:

In this scenario, we compare the values between book value including goodwill and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value including goodwill - fair value  

= $450 million - $402 million

= $48 million

All other information which is given is not relevant. Hence, ignored it

You might be interested in
Temple Square Inc. reported that its retained earnings for 2005 were $490,000. In its 2006 financial statements, it reported $60
V125BC [204]

Answer:

Dividend = $40,000

Explanation:

Given:

Temple Square Inc. reported that its retained earnings for 2005 were $490,000.

In its 2006 financial statements, it reported $60,000 of net income,

It ended 2006 with $510,000 of retained earnings. ( Ending retained earnings )

Question asked:

How much were paid as dividends to shareholders during 2006 ?

Solution:

Here given that Temple Square Inc. reported that its retained earnings for 2005 were $490,000, means this amount will carry forward and will be considered as Beginning retained earnings for 2006.

Now, we have to find, how much dividends were paid to shareholders during 2006.

As we know:

Ending retained earnings = Beginning retained earnings + Net income - Dividend

510,000 = 490,000 + 60,000 - Dividend

510,000 = 550,000 -  Dividend

Subtracting both sides by 550,000

- 40,000 = -  Dividend

Adding both sides by minus ( - )

Dividend = $40,000

Therefore, Temple Square Inc. paid $40,000 to shareholders during 2006.

3 0
3 years ago
So why it is a ration decision to make sure the marginal benefits outweighs the marginal costs? (Be detailed, you can use exampl
Rzqust [24]

Answer:

For the business to make profits

Explanation:

Marginals revenue is the additional income realized from the sale of an extra unit. It is the revenue that a firm will gain by selling one more unit of a product or service.

Marginal cost is the expense incurred in the production of one more unit of a product.  A business compares marginal revenue to marginal cost to decide if it will cease or continue with production and selling activities.

For a business to continue selling and make profits, marginal revenue must be greater than the marginal cost. In other words, the revenue realized by selling one extra unit must exceed the cost of producing that item. Selling one more unit when the marginal cost is more than the marginal revenue will result in a loss.

If the marginal revenue from a computer is $40 and the marginal cost is $50,  selling on extra computer results in a loss of $10. But if the marginal revenue from the same computer is $60, the sale on one more unit will be a gain of $10.

6 0
3 years ago
Sheffield Corporation has 84,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to s
aliya0001 [1]

Answer: Please check in the explanation column for answer

Explanation: The entries on the appropriate dates to record the declaration and payment of cash dividend in Sheffield Corporation  is given as

Nov 1.

Debit: Cash Dividends 84,000

Credit: Dividends Payable 84,000

Dec 31.

Debit: Dividends Payable 84,000

Credit: Cash 84,000

7 0
3 years ago
American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri
drek231 [11]

Answer:

a. Particulars                                Amount

Gross sales                                  $925,000

Less: COGS                                 <u>$490,000</u>

EBITDA                                        $435,000

Less: Depreciation                      <u>$120,000</u>

EBIT                                              $315,000

Less: Interest on notes payable <u>$8,800   </u>  (220000*4%)

EBT                                               $306,200

Less: Tax (35%*306200)             <u>$107,170</u>

Net Income                                   <u>$199,030</u>

<u />

b. Operating cash flow = Net income + Depreciation

Operating cash flow = $199,030 + $120,000

Operating cash flow = $319,030

6 0
3 years ago
As an it professional you may support databases, but not do any application coding, why do you think it is still important to un
Anarel [89]
It is important to understand that the styles describe different aspects of applications. For example, some architectural styles describe deployment patterns, some describe structure and design issues, and others describe communication factors. Therefore, a typical application will usually use a combination of more than one of the styles described in this chapter.
3 0
3 years ago
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