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boyakko [2]
3 years ago
12

Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc

ept the fair value of the investee's identifiable noncurrent assets is $40,000 higher than book value. In addition, the investee's pre-transaction tax bases in its individual net assets approximate their reported book values. This difference relates entirely to tax-deductible items. Assume the marginal tax rate is 40% for the investor and investee. What amount of goodwill should be reported in the investor's consolidated balance sheet prepared immediately after this business combination

Business
1 answer:
Andrew [12]3 years ago
8 0

Answer:

I could not find the exact details related to this question so here is a similar question to guide you.

Goodwill = Acquisition Price - Net book value (Investee)

= 75,000 - ( Assets - Liabilities)

= 75,000 - ( 90,000 - 40,000)

= $25,000

Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.

= 10,000 ( 1 - 40%)

= $6,000

Net Goodwill = 25,000 - 6,000

<h2>= $19,000</h2>

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Answer:

The colleague has committed a violation because your customer's order could move the price of ABC stock

Explanation:

Front running is also called tailgating. It is a prohibited practice where a trader enters into a position security based on non-public information about a large trade that will influence the price of the security.

The trade is initiated to take advantage of the new price that the large trade will cause. The position is entered before the large trade occurs.

In this scenario your neighbour heard you telling your client to but 100,000 share of ABC. Because the transaction will influence the market he also tells his client to buy 10,000.

This is tailgating and it is a violation.

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Below are trends in operating cash flows for three companies. based on an analysis of operating risk, which company's management
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The shareholders' equity of Green Corporation includes $332,000 of $1 par common stock and $520,000 par of 7% cumulative preferr
gogolik [260]

Answer:

$16,800

Explanation:

The computation of the amount of dividends common shareholders will receive in 2021 is shown below:-

Dividends per year for preferred stock = Par value × Cumulative preferred stock

= $520,000 × 7%

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So, dividends in arrears for preferred stock for years is

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= $36,400 - $32,000

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For 2018 = For 2017 + (Dividends per year for preferred stock - Cash dividend)

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= $8,800

Total dividends to be paid to preferred stockholders = For 2018 + Dividends per year for preferred stock

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4 0
3 years ago
Kellogg's begins to strategize a marketing campaign for its newly acquired Gardenburger product line. Before getting too far int
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Answer:

The parameter of its budgets.

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Parameter of the budget will determine the amount of fund that are available for the marketing campagin. This will put a limit on the type of plan that the marketing team can execute.   It would be a waste of time if you spent a lot of effort and work hours to  create an excellent plan but do not have the money to turn that plan into reality

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3 years ago
ABG Corporation has the following dividend forecasts for the next three years: Year Expected Dividend 1 $ .25 2 $ .50 3 $ 1.25 A
MAVERICK [17]

Answer:

Price of share today =  $21.302

Explanation:

<em>The price of a share can be calculated using the dividend valuation model  </em>

<em>According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return</em>.

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

Price=Do (1+g)/(k-g)

Do - dividend in the following year, K- requited rate of return , g- growth rate

S<em>tep 1 : PV of dividend from year 1 to 3</em>

Year                                               PV of Dividend

1            0.25 ×  1.1^(-1)         =          0.227

2              0.50  ×  1.1^(-2)     =         0.413

3             1.25   ×   1.1^(-3)      =         0.939

<em />

<em>Strep 2 : PV of dividend from year 4 to infinity</em>

PV (in year 3 terms) of dividend= 1.25 × 1.05/(0.1-0.05) = 26.25

PV in year 0 terms =  26.25 × 1.1^(-3) = 19.72

Present Value =   0.227  +    0.413  + 0.939  +   19.72 =  21.302

Price of share today =  $21.302

7 0
3 years ago
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