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swat32
2 years ago
14

1. A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquired company no

longer exists as a separate entity. B. The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. C. The acquiring company does not revalue its assets and liabilities to fair value at the date of acquisition. D. The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books.
Business
1 answer:
Scilla [17]2 years ago
8 0

Answer:

The answer is D.

Explanation:

When a company is acquiring a company, it is buying all the assets and liabilities of the acquired company.

The acquiring company will report the intangible asset(Goodwill). It is a purchased goodwill. Goodwill is the difference between purchase price and the net asset of the acquiring company.

Acquiring company will no longer exist because the acquired is buying all of the acquiring company's share.

All the assets and liabilities will be valued and reported at fair value to show the current market price.

It is not necessary for acquiring company to revalue all its assets and liabilities.

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Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the __________
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Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $
kirill [66]

Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.

Make in house:

Cost= 49,500*5.15= $254,925

Buy:

Cost= 49,500*3.90= $193,050

Incremental cost= 254,925 - 193,050= $61,875

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3 years ago
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8 0
3 years ago
Inventories held for sale in the normal course of business are classified in the balance sheet as?
Iteru [2.4K]

Inventories held for sale in the normal course of business are classified in the balance sheet as Current liabilities.

<h3>What is meant by current liability?</h3>

This is the term that is used to refer to all of the financial obligations that the customer would have to have due to themselves in the long run. These are the liabilities that are known to be dropped in the current assets and would then be settled in the course of a year.

Hence we can say that Inventories held for sale in the normal course of business are classified in the balance sheet as Current liabilities.

Read more on Current liabilities here: brainly.com/question/28039459

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4 0
1 year ago
The budget for making the movie The Twilight Saga: New Moon was one-fifth the budget for making Harry Potter: The Half Blood Pri
sergey [27]

Answer:

The budget for The Twilight Saga: New Moon = $50 million

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Let the budget for Twilight Saga: New Moon = T

Let the budget for Harry Potter: The Half Blood Prince = H

We are given the following:

T=\frac{1}{5}H (The budget for Twilight Saga is one-fifth the budget for Harry Potter)

Cross multiplying the equation

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Therefore, the budget for The Twilight Saga: New moon = $50,000,000

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