1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pishuonlain [190]
3 years ago
7

Damon Co. purchased 100% of the outstanding common stock of Smith Co. in an acquisition by issuing 20,000 shares of its $1 par c

ommon stock that had a fair value of $10 per share and providing contingent consideration that had a fair value of $10,000 on the acquisition date. Damon also incurred $15,000 in direct acquisition costs. On the acquisition date, Smith had assets with a book value of $200,000, a fair value of $350,000, and related liabilities with a book and fair value of $70,000. What amount of gain should Damon report related to this transaction?
Business
1 answer:
Tamiku [17]3 years ago
8 0

Answer: the correct answer is $70000

Explanation: the fair value of the shares given plus the fair value of the contingent consideration is the total amount paid by the buyer which is (20000 shares * $10 price per share) = $200000+$10000= $210000.

The gain of the transaction is registered as the net fair value of the acquiree that is $350000-$70000= $280000 less the sum paid by the Acquirer that is $280000-$210000= $70000.

The $15000 in direct acquisition costs are registered as period expenses and not relevant for the calculation of the gain of the transaction.

You might be interested in
Include general ability to understand alter lead and control the behavior ​
Liono4ka [1.6K]

Answer:

  • Monitor progress towards Goals
  • control the situation
  • monitor and measure the right items
  • provide coaching and feedback
  • supervising others
  • conflict resolution
  • emotional intelligence
  • communication skills
  • manage performance
  • interviewing skills
  • team building
  • delegation
  • change agent
  • coaching
  • problem solving
  • motivating others
4 0
3 years ago
From the beginning of 2000 until its peak in 2012, Apple’s stock price rose from $27.97 to $702.10, an increase of 25 times. Yet
Tcecarenko [31]

Answer:

Steve Jobs coming back, Innovations, and Tim Cook taking over as COO

Explanation:

The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.

In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.

This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.

However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.

3 0
3 years ago
Which of these is an important factor in the paid search auction system?
Rama09 [41]

Answer:

DHow relevant your ads are

Thank you and please rate me as brainliest as it will help me to level up

5 0
3 years ago
The roots of today's anthropology emerged from very early accounts of travelers in previous centuries. what about these accounts
NISA [10]
Early accounts of ethnic groups and their cultures and habits came from scientific travelers like George M. Dawson who became director of the Geological Survey of Canada. In his travels in Canada to explore its mineral potential, he encountered many native groups who he described and also wrote of their languages so this is an example of how early travelers laid the foundation for the studies of later anthropologists. 
5 0
3 years ago
What is protectionism and why would a country base trade policy on it? Explain at least two reasons.
Anton [14]
Protectionism is a government or economic policy that does not allow foreign or international trade through methods and variety of government regulations outlined to promote fair competition with the goods and services made domestically. Business and workers were protected within a country through regulating or obstructing trade with different countries.

<span>A country should base trade policy for two reasons. 1.) It protects local businesses and jobs.  2.) It promotes fair competition on the local goods and services.</span>


3 0
3 years ago
Other questions:
  • What type of economy is an economic system in which private businesses can operate freely with minimal state control?Henry lives
    14·1 answer
  • Your boss Ron just heard of a new social network, with typical engagement rates of above 30%. He wants you to set up an account
    8·2 answers
  • In order to "not carry out the desire of the flesh," paul urges the galatians to
    11·2 answers
  • The accounting and finance department performs processes such as creating financial statements, paying accounts payables, and co
    13·1 answer
  • The hyattsville country club requires that an applicant's grandfather be a member of the club in order to qualify for membership
    11·1 answer
  • Skylar is the owner of Pirate Pizza Bus, a popular food truck. The food truck was so successful that she decided to open a brick
    7·1 answer
  • which of these is most appropriate closing for a business letter? a. respectfully, b. kind thoughts, c. until next time, d. chee
    7·2 answers
  • The five main phases of a project include pre-planning, planning,__________,__________, and closing.
    5·2 answers
  • What's your annual income if you're unemployed?
    5·1 answer
  • Oil companies can refine a barrel of petroleum so that it yields either more home heating oil or more gasoline. if the price of
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!