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german
3 years ago
11

The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is

$90,500 and the fair value of its liabilities is $13,500. Longhorn paid Cattleman's $84,120 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:
Business
1 answer:
cestrela7 [59]3 years ago
8 0

Answer:

$7,120

Explanation:

Given that,

Assets = $85,900

Liabilities = $13,500

Fair value of assets = $90,500

Fair value of its liabilities = $13,500

Amount paid to acquire all of its assets and liabilities = $84,120

Net assets:

= Fair value of assets - Fair value of its liabilities

= $90,500 - $13,500

= $77,000

Goodwill = Purchase consideration - Net assets

               = $84,120 - $77,000

               = $7,120

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Answer:

$1,306,986

Explanation:

Calculation to determine What is the levered value of the equity

First step is to calculate the VL

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VL= $1,706,986

Now let calculate the levered value of the equity (VE)

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Therefore the levered value of the equity is $1,306,986

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3 years ago
How should factory overhead variances be treated in a journal entry to apply factory overhead?
AURORKA [14]

Factory overhead variances should be broken out into their individual components and reported separately as either debits or credits to their individual variance accounts should factory overhead variances be treated in a journal entry to apply factory overhead

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2 years ago
When a firm can _____ its capital equipment over a shorter period, it cuts its taxes _____. appreciate; later appreciate; now de
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2 years ago
investment is made at r percent compounded annually, at the end of n years it will have grown to A = P(1 + r)n . An investment m
bixtya [17]

Answer:

$1,500

Explanation:

Given the compounding formula A = P(1+r)^{n}

And given an investment (P), made at 16% compounded annually (r), and an ending amount of $1,740 (A) at the end of the year (n = 1 year), the original amount invested (P) can be computed as follows.

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3 years ago
These are steps in the decision-making process except for _____.
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