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Dominik [7]
4 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]4 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.

You might be interested in
To rate TV shows, phone surveys are sometimes used. Such a survey might recordseveral variables, some of which are listed below.
serg [7]

Answer:

B) the ages of all persons watching the show

Explanation:

While doing any surveys, whether on any platform, where the question in survey is of personal information it leads to categorization.

Here, the analysis has number of persons watching such show, this will not categorize any as people will just say yes or no.

Ages is a personal question as what is the age will depend upon person to person and can be categorized in a wide range.

The number of times the show has been watched depends on timings and people's preference, to such there is no categorization.

the name of the show will only create the details of people's preference for the show.

Therefore, Categorization can be done only for

B) the ages of all persons watching shows.

8 0
3 years ago
The long-term result of entry and exit in a perfectly competitive market is that all firms end up selling at the price level det
Mademuasel [1]

Answer:

The answer is avg cost curve

Explanation:

The long-term result of entry and exit in a perfectly competitive market is that all firms end up selling at the price level determined by the lowest point on the avg cost curve

7 0
3 years ago
Match each the following steps in the litigation process with its best description or example.
Lilit [14]

Answer:

The options were incomplete! All of the options, their right order and description is explained below.

Complete Question:

Match each the following steps in the litigation process with its best description or example.

A. Alternate dispute resolution

B. Deposition

C. Judge decides

D. Defenses raised

E. Starts the litigation

1. Discovery

2. Bench trial

3. Complaint

4. Mediation

5. Answer

Matching:

3. Complaint -> E. Starts the litigation

5. Answer -> D. Defenses raised

1. Discovery -> B. Deposition

4. Mediation -> A. Alternate dispute resolution

2. Bench trial -> C. Judge decides

Short Explanation:

Suppose A is plaintiff and B is defendant.

A files a complaint saying that B has done something wrong to me, to which B Answers and denies the claim of A. Then both parties A and B start to discover evidence against each other. Mediation usually happens at this stage when both parties know their position. If mediation fails then bench trial starts where a civil judge decides the verdict.

Detailed Explanation:

The litigation (means a case or lawsuit) process starts when a complaint is filed by a plaintiff (person who brings a case against someone in court of law) stating the alleged wrongdoings done by the defendant. He claims to be given relief against the wrongs done by the defendant.

Then defendant responds with an Answer in which he clarifies or point out incorrect allegations or denies all the accusations one by one made against him. If defendant finds a strong case against himself then he goes for mediation otherwise he proceeds towards discovery.

Discovery is the legal term used for finding and gathering of all sort of evidence or information. Examples of discovery are interrogations, depositions, examination reports.

Mediation is the process of dispute resolution where both parties appear in front of a neutral mediator and try to resolve the issue without going to trial. Everyone tries to avoid going to trail because it is expensive and time consuming therefore, many lawsuits get resolved without going into the trial.

When mediation fails then the final solution is to go for a trail. A bench trial means a trial in which a judge decides the verdict (no jury).

Note: Mediation means settlement and it can happen at any stage when both parties agree to a certain solution,

5 0
4 years ago
Thatcher Corporation's bonds will mature in 15 years. The bonds have a face value of $1,000 and an 7.5% coupon rate, paid semian
Kaylis [27]

Answer:

Using the approximation formulas we can conclude the YTM and YTM respectively are as follow:

YTM 4.2982456%

YTC   5.3846154%

Explanation:

Yield to Call:

YTC = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

C= 37.5 (1,000 x 7.5% / 2 payment per year)

F= 1050 future call price

P= 900 market price

n= 10 (5 years x 2 payment per year)

YTM = \frac{37.5 + \frac{1050-900}{10 }}{\frac{1050+900}{2}}

quotient 5.3846154%

Yield to maturity:

YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

C= 37.5

F= 1000

P= 900

n= 30

YTM = \frac{C + \frac{1,000 - 900}{30}}{\frac{1.000 + 900}{2}}

quotient 4.2982456%

7 0
3 years ago
In 2018, the internal auditors of Development Technologies, Inc., discovered that a $5.9 million purchase of merchandise in 2018
Alenkinab [10]

Answer:

Explanation:

The journal entry is shown below:

Purchase A/c Dr $5.9 million

     To Retained earning A/c $5.9 million

(Being the error is corrected and it credited to the retained earning account)

For correction of an error, we debited the purchase account and credited the retained earning account for $5.9 million so that the correct posting can be done.

7 0
4 years ago
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