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Dominik [7]
3 years ago
7

Company J acquired all of the outstanding common stock of Company K in exchange for cash. The consideration transferred exceeds

the acquisition-date fair value of the net assets acquired. How should Company J determine the amounts to be reported for the plant and equipment and long-term debt acquired from Company K?
Business
1 answer:
slamgirl [31]3 years ago
4 0

<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.

<u>Explanation:</u>

Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.

Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.

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An entrepreneur establishes a social justice online retail company. The company purchases authentic artwork, jewelry and crafts
Greeley [361]

Answer:

a. Developing a robust marketing program to promote the social justice elements of the business and gain insights into consumer purchasing behavior on the website

Explanation:

In order to sustain the business, the entrepreneur should create a robust marketing program in which he is able to promote the components of social justice and also the behavior of the consumer on the website so that he gets to know how much people are active in his website, what are the problem people are facing, etc

Hence, the correct option is a

3 0
2 years ago
Martha is a 50% partner in the am partnership and has an outside basis of $112,000 at the end of the year prior to any distribut
poizon [28]

Answer:

0 gain ; 72,000 basis

Explanation:

Given that

Outside basis at the end of the year = $112,000

Received a proportionate operating distribution in cash for $40,000

So by considering the above information, the amount of gain or loss is zero as she does not recognized in the distribution and her basis in her partnership interest is the remaining amount i.e

= $112,000 - $40,000

= $72,000

3 0
2 years ago
(b) Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town.”
mamaluj [8]

Answer:

The following are 3 against reasons for the reconstruction of Greensburg as the "green city":

Explanation:

Following are the reasons and the counter reasons:

Reasons:

  • Its tornado was something which will never be large as ever before, in which the city has been harmed and 95% of his residences have been destroyed. It also offers you to recreate the green city.  
  • The creation of a green city would also enable many cities to the devastated area to integrate with green technology.  
  • The Greenburg would become an icon with style as well as a prototype for the building of a clean energy city.

Counter Reason:  

  • The green tech isn't cheap and it would put pressure on the public resources.  
  • When a tornado of the same size hit Greenburg, then nobody would cause a serious source of financial and private assets.  
  • The city should give priority to tornado refugee camps that are capable of protecting public goods instead of building a green culture.
6 0
3 years ago
Suppose that your firm manufactures toy flying drones. monthly demand for the drones is 46,000 units. setup cost per order is $1
3241004551 [841]
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6 0
3 years ago
What is the standard deviation of a portfolio's returns if the mean return is 15%, the variance of returns is 184, and there are
masya89 [10]

In the problem, the given data is the mean and the variance. Now to solve this problem, we must remember that the formula for variance is:

Variance = s^2

Where s is equivalent to the standard deviation, therefore:

s = sqrt (Variance)

Calculating for the value of the standard deviation given Variance = 184:

s = sqrt  (184)

s = 13.56 %                          (ANSWER)

7 0
3 years ago
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