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gtnhenbr [62]
3 years ago
8

Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilit

ies of Huron. Book values and fair values of acquired assets and liabilities were:Book Value Fair ValueCurrent assets (net) $130,000 $125,000Property, plant, equip. (net) 600,000 750,000Liabilities 150,000 175,000Lake would record goodwill of:a. $ 0.b. $ 75,000.c. $445,000.d. $250,000.
Business
1 answer:
liraira [26]3 years ago
3 0

Answer:

d. $250,000.

Explanation:

In order to calculate the expense of the goodwill, we must first calculate the net asset's fair value shown below:

The fair value of net asset = The fair market value of total assets - the fair market value of liabilities

= $125,000 + $750,000 - $175,000

= $700,000

And, the purchase value of all outstanding stocks is $950,000

So, the goodwill would be  

= $950,000 - $700,000

= $250,000

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A manufacturing department has 50,000 EUP for units completed and transferred out and 4,500 EUP for units in ending inventory. M
ludmilkaskok [199]

Answer:

Value of closing inventory = $ 28,125.00

Explanation:

To value inventory, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units(EUP)  for each of the cost element.

So the value of the closing inventory, is determined as follows:

Value of inventory = cost per E.U.P × number of E.U.P

Material = $2.50 × 4,500 = 11,250.00

Labour and overhead= $3.75 × 4,500 =  16,875.00

Total amount of work in progress

= 11,250 + 16, 875

= $ 28,125.00

6 0
3 years ago
What is lump sum payment?
vladimir2022 [97]
One single payment of money, opposed to a an annuity. (a series of payments made over time)
8 0
3 years ago
company's retained earnings have a financing cost associated with them because retained earnings belong to which of the followin
Masja [62]

Answer:

a. The common stockholders.

Explanation:

A company's retained earnings have a financing cost associated with them because retained earnings belong to the common stockholders.

Retained earnings can be defined as the accumulated profits or net income generated by an organization but are not distributed or given as dividends to the stockholders, rather are reinvested in to the business.

Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.

Retained earnings represents the total stockholders' equity reinvested back into the company.

5 0
3 years ago
Name and explain the relationship between triple bottom line social responsibility
KonstantinChe [14]
The three bottom line in the social responsibility are :

- Economic
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This three bottom lines could directly affect each other. For example, as the company experienced an economic growth, it could increase the quality of the social and environmental element around the company through various Corporate social responsibilities.
7 0
3 years ago
A customer has requested that Lewelling Corporation fill a special order for 2,100 units of product S47 for $26 a unit. While th
RSB [31]

Answer:

Annual Financial advantage $ 550

Explanation:

<u>Computation of income/loss on special order</u>

Unit product costs

Normal product costs                                                                $ 19.20

Incremental variable costs  $ 1.30 per unit                               <u>$  1.30</u>

Total product costs                                                                     $ 20.50

Revenues per unit                                                                       <u>$ 26.00</u>

Profit per unit                                                                               $   5.50

Sales Units                                                                                    2,100 units

Total incremental profit on order                                               $ 11,550

Less; cost of moulds                                                                    <u>$ 11,000</u>

Incremental profit on S 47 order                                                 $    550                                                  

3 0
3 years ago
Read 2 more answers
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