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Paul [167]
3 years ago
12

On January 1, 20X8, L Corporation acquired all of the common stock of S Company for $300,000. On that date, S Company's identifi

able net assets had a fair value of $250,000. The assets acquired in the purchase of S are considered to be a separate reporting unit of L Corporation. The carrying value of S Company's net assets at December 31, 20X8, is $310,000. The fair value of the reporting unit is determined to be 260,000. Determine the amount, if any, of impairment loss to be recognized at December 31, 20X8.
a. 40,000
b. 50,000
c. 10,000
d. 60,000
Business
1 answer:
dimaraw [331]3 years ago
3 0

Answer:

b. 50,000

Explanation:

According to the given situation, the computation of impairment loss is shown below:-

The Amount of impairment loss to be recognized at December 31, 20X8 is

= Net assets - Fair value of reporting unit

= $310,000 - $260,000

= $50,000

Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.

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An auction market:
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Answer:

The correct answer is letter "B": has a physical trading floor.

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6 0
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_____ change occurs occasionally, with periods of relative stability, and managers can respond with technical, product, or struc
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<em>Episodic change</em><em> change occurs occasionally, with periods of relative stability, and managers can respond with technical, product, or structural innovations as needed.</em>

<h3>Episodic change</h3>

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5 0
2 years ago
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $50
borishaifa [10]

Answer:

a. $(8000)

b. Company should choose alternative 1 and make bottles.

Explanation:

Particulars               Make Bottles            Buy Bottles  Differential

                                Alternative 1             Alternative 2

Purchase Price                  0                       $37                               $(37)

Freight Charges                 0                       $4                                $(4)

Variable cost                    $33                                                          $33

Fixed Cost                        $17                     $17                                  0

Cost per unit                    $50                    $58                              $(8)

Income / (Loss)                 $50,000            $58,000                      $(8,000)

b. The company should choose alternative 1 and make bottles. The buying of bottles will cost company loss of $8,000.

3 0
3 years ago
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