You will receive better pay
The client will tackle all of the target company's money asset and liabilities, whether or not they may be known at the time of the sale or not. This is, even though a patron is not aware of a corporation's money owed and the time of the sale, they'll still be held accountable for them after the acquisition.
The acquisition gets incorporated into the acquirer's stability sheet, like the purchase of another asset. Financing objects trade (cash, debt, and equity), and the asset and liability accounts rise. No new subsidiary gets created.
Buy acquisition accounting is now the usual way to record the acquisition of a company at the balance sheet of the acquiring enterprise. The assets of the received agency are recorded as property of the acquirer at honest market value. This technique of accounting will increase the fair marketplace fee of the acquiring organization.
An acquisition is whilst one enterprise takes over any other organisation, and the acquiring employer will become the owner of the goal employer. In different words, the received organization now not exists following an acquisition because it has been absorbed by the acquirer. The equity stocks of the acquiring agency continue to change.
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Answer:
d. directly increase by $2 and the money-creating potential of the commercial banking system will increase by $6
Explanation:
Note: The organized table of the question is attached as picture below
Total increase in money supply = (1/Reserve ratio)*2
Total increase in money supply = (1 / 0.25) * 2
Total increase in money supply = 4 * 2
Total increase in money supply = 8.
Out of which 2 is directly increased because fed deposits 2 into checking deposits and 6 is indirectly increased.
Answer:
a. Raw material discounts
b. Reduction of unit cost
c. Specialists
d. Better production methods
Explanation:
a. Corporations have various advantages over small businesses. Because they buy raw materials in bulk they are able to negotiate volume discount. This gives them more advantage over the small business who cannot buy in bulk.
b. A fall out from the above is reduction of unit cost or average cost, when discount is received it reduces the total cost of material and by implication the unit cost.
c. Because of their size and financial strength, corporation is able to attract qualified employees as opposed to small businesses that are limited by their financial position.
d. Corporations because of their financial strength are able to finance research with view to discovering a better production methods. This may be impossible to small businesses.
$504000 is the actual return
<u>Explanation:</u>
particulars calculation Amount
Service cost 700000
Interest cost
480000
Less: Expected return
576000
Prior service cost 48000
Net loss 30000
Pension expense 682000
Therefore, the pension expense is $682000
<u>The computation is as follows for the calculation of return (in $000’s)
</u>
<u>Plan assets
</u>
Beginning = $5760
Actual return = ?
Cash contributions = 696
Less: Retireee benefits = (624)
Ending balance = $6336
Thus after solving this, we get the actual return that is equal to = $504,000