Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
<u />
Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
<u />
b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
<u />
Answer: financial inflow will reduce the United States interest rate.
Explanation:
The options include:
a. financial inflow will reduce the United States interest rate.
b. financial outflow will increase the Japanese interest rate.
c. The interest rate gap between the United States and Japan will be eliminated.
d. Loanable funds will be exported from the U.S. to Japan
e. the interest rate in the United States will equal theinterest rate in Japan.
Based on the information given in the question, the things that will occur include:
• financial outflow will increase the Japanese interest rate.
• The interest rate gap between the United States and Japan will be eliminated.
• Loanable funds will be exported from the U.S. to Japan
• the interest rate in the United States will equal the interest rate in Japan.
Therefore, option A is the correct option.
Answer:
(a) update depreciation for 2018
Debit ; Depreciation $10,800
Credit Accumulated Depreciation $10,800
(b) record the sale
Debit : Cash $12,960
Debit : Accumulated Depreciation $62,100
Credit : Profit and Loss $10,260
Credit : Equipment at Cost $64,800
Explanation:
(a) update depreciation for 2018
Recognize deprecation
(b) record the sale
Recognize proceeds from sale and profit or loss from sale
Answer:
utmost good faith
Explanation:
The utmost good faith refers to the principle in which both the parties are acted honestly i.e it disclosed all the information related to the insurance and does not misguide anything to gain a benefit in term of profit
Therefore in the given case, there is a contract made between the two parties where they trust each other and hope that they treated each one in a honest manner
So this situation represent the utmost good faith
Answer:
In order for Suzanne to be considered an active participant in her stores, she must work at least 31 hours more. That way, her total working hours will be above 500, and she can deduct any losses from her adjusted gross income.
If she doesn't work at least 31 hours more, these activities will be considered passive activities and can only offset passive income.
Explanation:
