Answer:
C) Auction with reserve.
Explanation:
During an auction with reserve if the auctioneer is not able to reach a minimum price set by the owner of the objects that are being auctioned, then the owner has the right to withdraw his objects. Usually the reserve price is set before the auction takes place but may be changed during the auction depending on the actual bids. The reserve price is commonly not disclosed to the bidders in an auction.
The answer to this question would be option B: FALSE. When we say medium, this is the mode of how the message would be transmitted from the source to the receiver. This is also known as the channel. An example of this would be television or radio. This statement becomes false because the medium does not have anything to do with how the receiver deciphers or decodes the message that is being sent. The medium only serves as a channel and does not affect on how the receiver would interpret such information.
Answer:
A. $250,800
B. $150,000
Explanation:
a. Calculation for maximum price
First step is to find the Earnings per year amount using this formula
Earnings per year= ROI×Plant and equipment replacement value
Let plug in the formula
Earnings per year=198,000*19%
Earnings per year=37,620
Second step is to calculate for the maximum price using this formula
Maximum price=Earnings per year/ROI
Let plug in the formula
Maximum price=37,620/15%
Maximum price= 250,800
Therefore maximum price is $250,800
b. Based on the information given each of the asset that each individual acquired will be recorded at the market fair value amount while the amount of $150,000 will be recorded as Goodwill.
Using this formula to calculate Goodwill amount
Goodwill =Purchased amount- Fair value
Let plug in the formula
Goodwill=750,000-600,000
Goodwill=$150,000
Please attach a diagram to accompany your answer otherwise it will be impossible to answer.
