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Tamiku [17]
4 years ago
12

If Firm A acquires Firm Z when firm Z has a book value of assets of $150 million and a book value of liabilities of $30 million.

However, if Firm A actually pays $170 million for Firm Z what is the resulting goodwill___________.
Business
1 answer:
defon4 years ago
8 0

Answer:

The answer is $50million

Explanation:

In Accounting goodwill is calculated by subtracting net asset of the acquired business from the purchase price.

Firm A is the acquiring firm and firm Z is the acquired firm.

Net Asset of firm Z(the acquired firm) is Total assets minus total liabilities. So we have:

$150million - $30,000

=$120milion

And goodwill is purchase price minus Net asset of the acquired firm(firm Z)

Goodwill= $170million-$120millon

Goodwill = $50million

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adoni [48]

Answer:

C. shortage cost​ / (overage cost​ + shortage​ cost).

Explanation:

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For service level, we added the overage cost and shortage cost in the denominator side

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5 0
3 years ago
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Sindrei [870]

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7 0
3 years ago
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ddd [48]

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