1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4. a. Calculate the average product
Bad White [126]

Answer: 15.1875

Explanation: k = 81 units L = 16 units

(81 × 3/4) × (16÷4) = 243

Q =243

APL = Q / L

243 ÷ 16 = 15.1875 units of labour

4 0
3 years ago
You have the following information for Waterway Industries for the month ended October 31, 2022. Waterway uses a periodic method
Sidana [21]

Answer:

Waterway Industries

A) The weighted-average cost is $28.527

B) Ending Inventory, cost of goods sold, gross profit:

                                     (1) LIFO          (2) FIFO          (3) Average-cost

Ending Inventory:          $2,660           $3,060               $2,853

Cost of goods sold:      $7,895            $7,495               $7,702

Gross profit:                  $3,780            $4,180               $3,973

Explanation:

a) Data and Calculations:

Date        Description              Units   Unit Cost Selling Price Total

Oct. 1      Beginning inventory   70        $26                            $1,820

Oct. 9     Purchase                   125          28                              3,500

Oct. 11     Sale                           (95)                         40                         $3,800

Oct. 17    Purchase                    95          29                             2,755

Oct. 22   Sale                           (70)                         45                            3,150

Oct. 25   Purchase                   80           31                             2,480

Oct. 29   Sale                         (105)                         45                           4,725

Oct. 31   Ending inventory      100    

Total: Goods available           370                                       $10,555

         Goods sold                  270                                                        $11,675

Weighted-average cost = Cost of goods available/Units available

= $10,555/370 = $28.527 per unit

Periodic method:

LIFO:

Ending inventory:

Oct. 1      Beginning inventory   70        $26  $1,820

Oct. 9     Purchase                     30          28       840

Total Ending inventory =          100               $2,660

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $2,660 = $7,895

Sales Revenue         $11,675

Cost of goods sold     7,895

Gross profit               $3,780

FIFO:

Ending inventory:

Oct. 17    Purchase                    20          29       $580

Oct. 25   Purchase                   80           31       2,480

Total Ending inventory =        100                   $3,060

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $3,060 = $7,495

Sales Revenue         $11,675

Cost of goods sold     7,495

Gross profit               $4,180

Average-cost:

Ending Inventory = $2,853 ($28.527 * 100)

Cost of goods sold = Cost of goods available - Ending inventory

= $10,555 - $2,853 = $7,702

Sales Revenue         $11,675

Cost of goods sold     7,702

Gross profit               $3,973

7 0
2 years ago
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix
Mkey [24]

Answer:

July 31

Shrinkage Expense $1,800    ($44,300 - $42,500)

Inventory  $1,800 Reflects the loss on inventory account.

Explanation:

When the company conduct a physical inventory of their merchandise, most of the time there are discrepancies between physical counts and books values, then it's necessary to reflect that in the accounting,

The correct way is to reflect the difference as a loss in there is less units of goods or as profit if there more units, it's mostly a loss because of damage or theft.

To this case the total amount on the books on July 31 was $44,300 but when the physical counts was made the result was a total value of $42,500, the difference of $1,800 it's reported as a loss to the company in the income statement.

5 0
3 years ago
The following table contains statements that provide some analysis of policies that address the minimum wage. Categorize each of
Musya8 [376]

Answer and Explanation:

The classification is as follows:

a. It is a normative statement as it discussed that there is an efficient wages for all types of workers for earnings

b. It is a positive statement that depend upon the facts and proofs as the leisure for workers would create more unemployment as compared to before

c. It is a normative statement

d. It is a positive statement as the workers who are less skilled they can be settled for the minimum wages as they dont get the highest paying jobs because these jobs would be belong to those workers who are highly skilled

3 0
3 years ago
Hannah, the youngest owner of a family-owned grocery, wants to make sure her company's culture is embedded in their organization
Anit [1.1K]

Answer:

True

Explanation:

The main part of a company is company culture, is basically how a company will beheave and will interact with the society around them, from providers, clients and workers, it is something like the personality of the company, in so Hannah can transfer and teach this culture to her co-workers by setting an example and telling stories that reflect that culture, doing rites and rituals can aslo help teach the company culture, and make the workers embrace that culture and make it their own.

3 0
3 years ago
Other questions:
  • "at rogopt, a multinational e-commerce site, the human resources department sends out emails to all its branches whenever there
    8·1 answer
  • What is cost Price formulas​
    13·1 answer
  • As customers of pierre’s dress shoppe prepared their wardrobes for winter, they purchased all of the long-sleeved dresses he had
    11·1 answer
  • Kristen’s employer owns its building and provides parking space for its employees. The value of the free parking is $150 per mon
    10·1 answer
  • Consumers affect which goods and services are produced because they
    8·1 answer
  • National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports
    11·1 answer
  • What does compounding interest mean??
    8·1 answer
  • Corporations report which of the following in a separate section of the income statement?A. cost of goods sold.B. income tax exp
    8·1 answer
  • Written evidence of the ownership of a piece of property
    11·1 answer
  • Sanjana facilitated a hiring committee for her advertising company. Six employees (including two managers) met together to discu
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!