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Monica [59]
4 years ago
15

Net annual cash flow can be estimated by:

Business
2 answers:
Anarel [89]4 years ago
8 0

Answer:

C.adding depreciation expense to net income

Explanation:

svetoff [14.1K]4 years ago
7 0
I think it’s C) adding depreciation expense to net income
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The balance sheet of Subsidiary shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and
Andrews [41]

Answer:

b. $20,000

Explanation:

Goodwill = Investment in Subsidiary - (Asset With book value - Liability with book value) - (Fair value of Asset - Book value of Asset)

Goodwill = $95,000 - ($86,400 - $15,000) - ($90,000 - $86,400)

Goodwill = $95,000 - $71,400 - $3,600

Goodwill = $20,000

So, parent should record goodwill on this purchase of $20,000

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Answer:

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