Answer:
The goodwill is $9,220
Explanation:
Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.
Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.
Net assets=$89,600-$14,800
Net assets =$74,800
Since purchase consideration paid is $84020
Goodwill=$84,020-$74800
Goodwill=$9,220
The goodwill of $9220 represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.
The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is called externality.
What does the term externality mean?
Externalities are situations when the production or consumption of products and services has an impact on other people that results in costs or advantages that are not accounted for in the pricing charged for the goods and services being offered.
What impact do externalities have on the economy?
When people, households, and businesses fail to internalise the indirect costs or advantages of their economic interactions, externalities pose serious issues for economic policy. Inefficient market outcomes are the result of the resulting wedges between social and private costs or profits.
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Answer:
3
Explanation:
Various educators teach rules governing the length of paragraphs. They may say that a paragraph should be 100 to 200 words long, or be no more than five or six sentences. But a good paragraph should not be measured in characters, words, or sentences. The true measure of your paragraphs should be ideas.
Answer:
A.
Explanation:
Property taxes on a manufacturing plant should be classified as a product cost but not a period cost. This is because product costs refers to the costs that you have to pay in order to continue production. This costs include labor, supplies, utilities, materials and even property taxes to maintain the facility open. While period costs refers to selling various other expenses taken on by administration but does not include property taxes.
c. Sailors would be the correct answer
