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
BabaBlast [244]
2 years ago
6

Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 20X8, for $300,000. The fair value

of the noncontrolling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances:Cash and Receivables$40,000Inventory $70,000Land $90,000Buildings and Equipment (net) $250,000Total Assets $450,000Accounts Payable $30,000Income Taxes Payable $40,000Bonds Payable $100,000Common Stock $100,000Retained Earnings $180,000Total Liabilities and Stockholders' Equity $450,000A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the noncontrolling shareholders.1. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition?A. $0B. $120,000C. $65,000D. $20,000Answer: C2. Based on the preceding information, what amount will be reported as investment in Silver Corporation stock in the consolidated balance sheet immediately following the acquisition?A. $0B. $210,000C. $300,000D. $400,000Answer: ACan you explain and show me why those are the answer?
Business
1 answer:
IRINA_888 [86]2 years ago
4 0

Answer

1. Goodwill = 65000

2. option A.

The answer of the exercise is attached in a microsof excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

2. In the consolidated balance sheet investment in silver corporation is eliminated in worksheet entries.

Download xlsx
You might be interested in
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipm
alexandr1967 [171]

Answer:

Times Interest earned:

2013 16.47

2012 49.02

2.- Yes it is suffficient as it is earnings above 10 times their interest

Explanation:

December 31, 2013.2013 2012 Sales Revenue $ 118,000 $ 147,000 Cost of Goods Sold 69,000 78,700 Gross Profit 49,000 $ 68,300 Selling, General, and Administrative Expenses 37,800 40,600 Interest Expense 680 565 Income before Income Tax Expense 10,520 27,135 Income Tax Expense 2,500 6,800 Net Income $ 8,020 $ 20,335

year 2013

Income before taxes: 10,520 + interest expense 680 =

interest before interest and taxes = 11,200

times interest earnings:

11,200/680 = 16.47

year 2012

Income before taxes: 27,135 + interest expense 565 =

interest before interest and taxes = 27,700

times interest earnings:

27,700/565 = 49.02

5 0
3 years ago
According to Dr. Ridel's Levels of Critical Thinking in Chapter 1, what level of critical thinking applies to your current statu
Ne4ueva [31]

Answer:

how to write it inthe morning and evening so much more than happy

8 0
2 years ago
Complete the statement with correct word in a recent survey. It was observed that many Asian youths have stated watching America
tangare [24]
This is an example of assimilation.
These Asian youths are watching American shows and starting to include the behaviors they see into their own everyday lives. They are assimilating into the culture they are observing, which can be either a good thing or a bad thing, depending on the level of assimilation. 
3 0
3 years ago
Read 2 more answers
(1 pt.) Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year ended De
Natali5045456 [20]

Answer:

A.2013 $20,560

B.2014 $23,125

Explanation:

2013 inventory at base amount ($22,140 ÷ 1.08)$20,500

2012 inventory at base amount(19,750)

Increase in base inventory $750

2013 inventory under LIFO

Layer one ($19,750 × 1.00)$19,750

Layer two ($750 × 1.08)810

Total $20,560

2014 inventory at base amount ($25,935 ÷ 1.14)$22,750

2013 inventory at base amount(20,500)

Increase in base inventory $2,250

2013 inventory under LIFO

Layer one ($19,750 × 1.00)$19,750

Layer two ($750 × 1.08)810

Layer three ($2,250 × 1.14)2,565

Total $23,125

8 0
3 years ago
On April 30, 2017, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, w
Dmitriy789 [7]

Answer:

$6,666.67 and $10,000

Explanation:

The computation of the depreciation expense for the year 2017 and 2018 is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($88,000 - $8,000) ÷ (8 years)  

= ($80,000) ÷ (8 years)  

= $10,000

Since the machinery is purchased on April 30 and we assume the books are closed on December 31 so the number of months calculated is 8 months

Therefore for the year 2017 the depreciation expense is

= $10,000 × 8 months ÷ 12 months

= $6,666.67

And, for the year 2018 the depreciation expense is same i.e $10,000

6 0
3 years ago
Other questions:
  • Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy a used car rather than a new one. There
    13·1 answer
  • What are the elements of the circular relationship in managing a sales call?
    10·1 answer
  • According to federal regulations, an irb must have at least two community members to fulfill membership requirements; one member
    15·2 answers
  • Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel​ = $4 an
    11·1 answer
  • The type of interest earned on a deposit account that is calculated on both the principal deposit
    11·1 answer
  • Giancarlo has received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to ma
    15·1 answer
  • The current stock price of Alcoco is $70, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%
    12·1 answer
  • Alta Loma Industries has three product lines, A, B, and C. The following information is available: A B C Sales $100,000 $90,000
    12·1 answer
  • Gabriella, a single taxpayer, has wage income of $160,000. In addition, she has $7,000 in long-term capital losses, $1,000 in lo
    6·1 answer
  • in 1978, the texas constitution was amended (article 8, section 22), so that if the economy of the state shrinks,
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!