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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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babunello [35]

Answer:

The correct answer is option B.

Explanation:

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3 years ago
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Masteriza [31]

Answer:

self-actualization

Explanation:

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Everything starts with the deficiency needs.<u> It is very important to satisfy this need in order to engage into the growth needs.</u> For example, a boy is very thirsty. If that need will not be met, the boy will continuously crave for water. On the contrary, if this is met immediately, the boy will aim to grow as a person. This is what you call the growth needs.

This needs are presented in a pyramid.

From top to bottom:

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2. Self-esteem Needs

3. Love or Belongingness Needs

4. Safety Needs

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It is ideal for a person to progress from Physiological Needs to Self-actualization, but it doesn't mean every stage is always met. Sometimes, fluctuations occur depending on the situation.

Regarding Clarence's case above. It was stated that he already worked as a doctor in a federal government. This means that he has already satisfied his self-esteem needs and the other needs below. Becoming a doctor is a prestige and a feeling of accomplishment. This can be found on the <u>Self-Esteem Needs </u>stage. In addition to this, <em>Clarence already reached his full potential and is seeking for personal growth and independence. </em>This is backed by the statement above that he opened a private clinic to continue his practice. This means he is already on the self-actualization stage of the hierarchy. 

6 0
2 years ago
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Answer:

b. mortgage backed securities diversify credit risk for the investor.

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An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>

In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.

8 0
2 years ago
Anne mcnair is planning to take a course in business communications. her studies are likely to involve two-way exercises that en
natta225 [31]
That statement is True.
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3 years ago
There is a new shoe company called "Tim's Shoes" that sells via online including an app. Just put in your size, see the selectio
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