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Tom [10]
3 years ago
13

Short Corporation acquired Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangibl

e assets was $48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? $0. $100,000. $400,000. $200,000.
Business
1 answer:
Neporo4naja [7]3 years ago
4 0

Answer:

correct option is a $0

Explanation:

given data

Acquisition value = $52,000,000

Fair value assets = $48,000,000

to find out

What is the annual amortization of goodwill for this acquisition

solution

we know that annual amortization of goodwill on a straight line basis over 40 years before 2001

and  FASB also issue statement about that it does not allow automatic amortization of goodwill

so it will be zero here as goodwill is not amortized here

so correct option is correct option is a $0

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For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the
romanna [79]

Answer:

Please see explanation.

Explanation:

1. and 2.

                                  Type of accounts            Normal balance

a. Cash                                asset                            Debit

b. Legal Expense               expense                       Debit

c. Prepaid Insurance          asset                            Debit

d. Land                                asset                            Debit

e. Accounts Receivable     asset                            Debit

f. Dividends                         equity                          Debit

g. License Fee Revenue    revenue                      Credit

h. Unearned Revenue        liability                        Credit

i. Fees Earned                     revenue                      Credit

j. Equipment                        asset                           Debit

k. Notes Payable                 liability                        Credit

l. Common Stock                equity                          Credit

Journal entries to increase the balance:

                                                             Dr                          Cr

a. Cash                                            Cash                        Revenue

b. Legal Expense                     Legal expenses              Cash

c. Prepaid Insurance               Prepaid Insurance          Cash        

d. Land                                      Land                                Cash                                    

e. Accounts Receivable        Accounts receivable        Revenue

f. Dividends                           Retained earnings            cash

g. License Fee Revenue      Cash                                   License Fee Revenue

h. Unearned Revenue         Cash                                  Unearned revenue

i. Fees Earned                     Cash                                   Fees Earned

j. Equipment                        Equipment                          Cash

k. Notes Payable                Cash                                    Notes Payable

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7 0
3 years ago
There may be a great deal of interaction between a service provider and a consumer in which they co-create value together. In su
fomenos

Answer:

Inseparability

Explanation:

Inseparability is one of the key principles in properly understanding the concept of service quality delivery. Service Quality is a phenomenon which seeks to determine, evaluate and critically look into how service delivered tow in line with the clients' expectations and objectives.

Evidently, and in a bid to co-create value, there is often a great deal of interaction between a service provider and a consumer. Suffix to say, the consumer here could be an individual or a body corporate.

A good service quality delivery is hinged on the skills, abilities and competencies of parties involved. The implication of the foregoing is that the end product of an exercise and in this case - value creation, is proportionate to the abilities and skills the individuals involved are bringing on board.

When service is been provided and expectations fall short, what I would do as a rational consumer is to match the provider of the service with the service provided. In this case, evaluation, rating and critical appraisal will be solely placed on the service provider. A consistent good service quality delivery by a particular service provider is enough to buy me over by the said provider, as it would have been established, through the service provider's track record, that good service quality delivery is its hallmark. Hence, more often than not, we say a client expectations of a product or service is inseparable to the product or service provider.

4 0
3 years ago
you are a trust fund baby, but you cannot touch your money until you are 30. you are now 21 and want to plan for your future bas
meriva

Answer:

Explanation:

30 - 21 = 9 years

r = 3% inflation

FV = 25,000

We know that FV = PV(1+r)^n

25,000 = PV(1+0.03)^9

PV = 25,000/ 1.3047731

PV = 19,160.42, this is how much it worth today

6 0
3 years ago
Cellular respiration is a complex process but you can think of it as a change machine. You have a $10 bill but, at the arcade, a
Oksana_A [137]

Answer:

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This process starts when a glucose molecule(from consumed food) is converted into carbon dioxide and how its energy is harvested as ATP.

It involves 4 steps which are:

1. Glycolysis: Here, glucose undergoes a chemical transformation which at the end is converted to molecules of pyruvate.

2. Pyruvate Oxidation: At this step the pyruvate produced from glucose above is converted into a two-carbon molecule to Coenzyme A, known as acetyl CoA. Here carbon dioxide is produced as well.

3. Citric acid cycle: At this step, the acetyl CoA produced above combines with a four-carbon molecule and goes through a cycle of reactions. This reactions produces four carbon starting molecules which are: ATP, NADH, FADH 2 and carbon dioxide.

4. Oxidative phosphorylation: Here, the molecules produced above  NADH, FADH 2 deposit their electrons in the electron transport chain thereby releasing energy. At the end of the electron transport chain, oxygen accepts electrons and takes up protons to form water.

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7 0
3 years ago
A company has an outstanding issue of perpetual preferred stock with an annual dividend of $5 per share. If the required return
Afina-wow [57]

Answer:

$80

Explanation:

The computation of the price of preferred stock to sell is shown below:

Cost of preferred stock = Annual dividend ÷ required return on the preferred stock

= $5 ÷ 6.25%

= $80

Simply we divide the annual dividend by the required return on the preferred stock so that the correct price of preferred stock to sell can be computed

4 0
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