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AVprozaik [17]
3 years ago
12

Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $

1,800,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $900,000 of goodwill. Should Robinson Company record this goodwill?
Business
1 answer:
Fed [463]3 years ago
7 0

Answer:

Explanation:

Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.

1.

Goodwill calculation

Purchase price - $2,500,000

Fair value -          $1,800,000

Goodwill -               $700,000        

2.

No

Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.

3

No

Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit

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Sehun (1986) finds that the practice of monitoring insider trade disclosures, and trading on that information, would be Group of
mart [117]

Answer:

not sufficiently profitable to cover trading costs.

Explanation:

Hasan Nejat Seyhun, a professor of Finance, in 1986, in his research study titled "Insiders' profits, costs of trading, and market efficiency" investigates the unusual findings of the previous insider trading studies, that suggests that, any investor can earn abnormal profits by reading the Official Summary.

Hence, he concluded that, that the practice of monitoring insider trade disclosures, and trading on that information, would be not sufficiently profitable to cover trading costs.

5 0
3 years ago
Most bands pursue a __________ style of subsistence economy.
AfilCa [17]
A foraging style of subsistence economy is what most bands pursue. The foraging method is primarily used when exploiting and utilising the various resources that can be found in the wild. One of the benefits, when the foraging method is used, is that the ability of the animals to survive most be improved.
8 0
3 years ago
________________ software analyzes vast stores of historical business data that have been prepared for analysis in corporate dat
GrogVix [38]

Answer:

Data mining

Explanation:

Data mining software are programs that are used by companies to be able to process and analyze big amounts of information to find tendencies, make predictions and develop more effective strategies. According to this, the answer is that data mining software analyzes vast stores of historical business data that have been prepared for analysis in corporate data warehouses and tries to discover patterns, trends and correlations hidden in the data.

6 0
3 years ago
On November 1 of year 0, Jaxon borrowed $50,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid
Stels [109]

Answer:

a. $750

b. $750

Explanation:

The first thing to do is calculate the monthly interest as follows:

Monthly interest = Total interest ÷ 12 = $4,500 ÷ 12 = $375

The rent for two months in year 0 (November and December) = $375 × 2 = $750.

Prepaid expenses (January to October of year 1) = $4,500 - $750 = $3,750.

Decision:

Prepaid expenses is not deductible under either cash accounting method or accrual accounting method for tax purposes.

Therefore, Jaxon can deduct only $750 two months (November and December) relevant for year 0 under both cash accounting method and accrual accounting method.

The prepaid expenses of $3,750 is not deductible in year 0 but can only be deducted in year 1.

4 0
3 years ago
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Traditional project management focuses on thorough planning up front. Such planning requires predictability.

The traditional project management is a practice which includes a set of developed techniques which are used in order for planning, execution, monitoring, closure, and estimating. Here the projects are run in a sequential cycle.

The planning which is done in traditional project management, this planning requires predictability. Thus, the predictability is considered an important factor here. A traditional project management focuses on upfront planning where factors like cost, scope, and time are given importance.

Hence, the entire project is planned upfront without any scope for changing requirements.

To learn more about traditional project management here:

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4 0
2 years ago
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