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Kisachek [45]
3 years ago
9

South Company purchased North Company. South Company paid $550,000 cash and assumed all of North Company’s liabilities. On the d

ate of purchase, North’s books showed tangible assets of $500,000, liabilities of $20,000, and equity of $480,000. An appraiser assessed the fair market value of the tangible assets at $530,000 on the acquisition date. Which of the following journal entries would be required to record the purchase of North Company on South Company’s books?
Business
1 answer:
Nat2105 [25]3 years ago
4 0

Answer:

Explanation:

The journal entry is shown below:

Assets A/c Dr $530,000

Goodwill A/c Dr $40,000

        To Liabilities A/c $20,000

        To Cash A/c $550,000

(Being the purchase is recorded and the remaining amount would be debited to the goodwill account)

The goodwill amount is computed below:

= Liabilities + cash paid -  fair market value of the tangible assets

= $20,000 + $550,000 - $530,000

= $570,000 - $530,000

= $40,000

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Answer: Gus should keep the files A. and D.

Explanation:

I don’t believe that he should keep B. due to D. showing an update to B. so, he shouldn’t keep B. so that he doesn’t get confused by both B. and D. being in the files.

8 0
1 year ago
A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, wher
jonny [76]

Answer:

She should invest $300,000 in Project A, and $200,000 in Project B.

Explanation:

Solution

Since Project B yields a higher return, she should invest as much money as possible in it, which is 40% of the total investment  or

or (0.40)($500,000) = $200,000

so

The remaining $500,000 - $200,000 = $300,000 should be invested in Project A.

Therefore, she should invest $300,000 in Project A, and $200,000 in Project B.

5 0
3 years ago
Explain why the monopsonist's marginal-revenue-product curve is downward sloping. Include the role of the price for the final go
alekssr [168]

Answer:

A monopsony is market where there is only one buyer, e.g. the government is the sole buyer for nuclear submarines in the US.

The demand curve of a monopsony is similar to the demand curve of any other type of market, i.e. it is downward sloping. Since there is only 1 buyer, the demand curve is also the supply curve. If the monopsonist wants to increase the quantity demanded at a lower price, the supplier (or suppliers) must be able to lower its costs and that generally results in lower labor costs.

3 0
2 years ago
Jillian is mapping her co-worker's decision-making process. she puts a few words in braces alongside a shaded rectangle. what do
Eva8 [605]
<span>The use of braces explains the meaning of the words preceding the brace. Here Jillian actually mapping her co-worker's decision-making process so the braces probably contain decisions made on some circumstances. The circumstances may be given outside the brace.</span>
7 0
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Making a down payment on a loan often _________ a. decreases monthly payments. b.increases the loan's interest rate. c.makes bor
GarryVolchara [31]
The correct answer is
<span>a. decreases monthly payments

This is correct because by making a down payment, your overall loan sum is smaller which means that your monthly payment is lowered.</span>
8 0
3 years ago
Read 2 more answers
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