Answer: <u><em>$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.</em></u>
Given:
Wood Corp. issued 100,000 shares of its $20 par value
The market value of Wood's common stock on August 31 was $36 per share.
Wood paid a fee of $160,000 to the consultant who arranged this acquisition.
Costs of registering and issuing the equity securities amounted to $80,000.
∴ Cost of acquiring = 100,000 shares issued × $36 per share
= $3,60,000
Answer:
OLTP (Online Transaction Process)
Explanation:
Online transaction processing or OLTP, which is database software, used to design as well as support the applications related to transactions on the Internet.
This database system is mostly used for the retail sales, order entry, management of customer relationship and financial transaction through the medium of Internet.
So, OLTP captures the event as well as transaction information using the technology for processing the information as per the rules of the business, update the information and store the information.
Answer: 1. Goodwill
2. a. Record no entry in the books
b. Record a loss in the books
Explanation:
1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.
Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).
2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this <u>gain</u> on the books.
b. If the value of the asset has decreased, Heartland should record a loss in the books to represent the loss on this account.
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Answer: Option (c) is correct.
Explanation:
Correct Option: Decrease the money supply, which will move output back towards its long-run level.
If the economy is in long run equilibrium and there is a rightward shift in the aggregate demand curve then as a result output and price level rises in an economy.
Here, the central must follow the contractionary monetary policy to stabilize the economy.
So, the central bank must decrease the money supply to move the output and price level back to its initial position.
