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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.

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When the average product of labor is decreasing​, the average product of labor is ▼ the marginal product of​ labor, and when the
attashe74 [19]

<u>When the average product of labor is decreasing​, the marginal  product of labor is less than average product of the labor.</u>

Explanation:

whenever the marginal product of labor is greater than the average product of labor the average product of labor must be increasing.

Average Product of labor is defined as the total output that a firm produces divided by the amount of workers required to produce that output.

Marginal Product of Labor is defined as the additional output produced by a firm because of hiring extra workers .

Production function is defined as the inputs used by a firm and the maximum output a firm can produce by employing those inputs

<u>Thus we can say that When the average product of labor is decreasing​, the marginal  product of labor is less than average product of the labor.</u>

3 0
2 years ago
Updating accounts receivable is part of which transaction cycle?
Lilit [14]

Updating accounts receivable is part of revenue cycle.

The procedure used by healthcare systems in the United States and around the world to track patient income, from their initial appointment or encounter with the healthcare system to their final payment of debt, is known as revenue cycle management (RCM). It is a typical component of healthcare management.

What is revenue cycle?

  • The phrase "all administrative and clinical functions that contribute to the capture, management, and collection of patient service revenue" can be used to describe the revenue cycle.
  • It is a cycle that explains and illustrates a patient's life cycle (and the ensuing income and payments) during a typical medical interaction, from admission (registration) through final payment (or adjustment off of accounts receivables).
  • After a patient makes an appointment, the revenue cycle starts, and it ends when the healthcare provider has taken all of the payments. Errors in revenue cycle management may result in payments to the healthcare provider being delayed or nonexistent altogether.
  • Healthcare providers can outsource their revenue cycle management to businesses that handle this complex process with specialized agents and proprietary technologies to manage healthcare provider revenue cycles because the revenue cycle process is complex and subject to regulatory supervision.

To learn more about revenue cycle visithttps://brainly.com/question/13167295

#SPJ4

7 0
1 year ago
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $527,000 cash, and YZ contri
Vaselesa [24]

Answer:

a. AB and YX are both general partners.

AB's basis in the partnership's interests = $527,000 + ($263,500/2) = $658,750

YZ's basis in the partnership's interests = $457,000 + ($263,500/2) = $588,750

Each partner share 50% interest in the recourse debt.

b. AB is a general partner, and YZ is a limited partner.

AB's basis in the partnership's interests = $527,000 + $263,500 = $790,500

YZ's basis in the partnership's interests = $457,000

Only AB has a share in the recourse debt, since YZ is a limited partner  it has no recourse debt share.

5 0
2 years ago
Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places s
yulyashka [42]

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

= $195,000 ÷ 290

= $672.41 per service call

The total service call would be

= JIT distributors + Non-JIT distributors

= 200 + 90

= 290

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume t
mixas84 [53]

Answer: $1,852,320

Explanation:

First find out the proportion owned by Matsui.

= 74,800 shares / 220,000

= 34%

The investment at the end of the year is:

= Cost of investment + Shares of net income - Share of dividend

Share of income:

= Percentage ownership * Net income

= 34% * 240,000

= $81,600

Share of dividend:

= 34% * 72,000

= $24,480

Investment at end of year:

= 1,795,200 + 81,600 - 24,480

= $1,852,320

8 0
3 years ago
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