Answer:
The amount allocated to goodwill at January 1, 2017, is: $16,000
Explanation:
We talk of goodwill when a company acquires another one and is the difference between the cost to purchase the business minus the fair market value of the tangible assets netted the liabilities.
In this case the fair value of the assets is:
Assets $550,000 + $40,000 - $10,000= $580,000
The book value of the assets is corrected with the fair value, in this case we correct the value of the patent.
Liabilities $300,000
porcentage acquired 30%
price paid $100,000
$100,000 - ((580,000-300,000)*30%) = $16,000
Answer:
Visualize and organize your thoughts.
Explanation:
Answer:
E
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Asset income - measures changes in the asset income
this transaction - China purchases $10 billion of United States government securities - would be included in the capital account
The answer is: coupon clip from a newspaper.
The rest of the choices are not advantageous for the consumers. A sales tax is a portion of the company's sales deducted. For compensation, the company may increase their prices. A steady rise in profit could also mean high prices which bring in cash flow. Lastly, an increased price is not desirable for consumers.
Answer:
there is no deadweight loss.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.
