Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m
Answer:
150%
Explanation:
Computation of the predetermined overhead rate
Using this formula
Predetermined overhead rate=Estimated overhead/Estimated direct labor cost
Let plug in the formula
Predetermined overhead rate=$322,500/ $215,000
Predetermined overhead rate=1.5*100
Predetermined overhead rate=150%
Therefore Predetermined overhead rate will be 150%
Answer:
C. Fixed Interval
Explanation:
"Fixed Interval" is a type of <em>Reinforcement Schedule. </em>The "reward" in the situation above is the<em> salary given to the employees</em> during Wednesdays. As noticed, their productivity increases over the week, with the peak on Wednesday.
The<u> "peak" of productivity</u> is the<u> exhibited behavior during pay day.</u> They try to work hard in order to receive a salary. <em>They become more inspired to work during the salary day.</em> It is followed by<em> </em><em>less productivity on Thursdays</em><em> </em>because they have already been rewarded.
Such reinforcement schedule is called the "fixed interval." This also means that their productivity will not increase if they will not be paid.
So, this explains the answer.
