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svetoff [14.1K]
3 years ago
12

WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million, of which $15 million w

as allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $40 million; book value of SCC’s net assets (including goodwill), $42 million. What amount of impairment loss should WebHelper recognize?
Business
1 answer:
Rufina [12.5K]3 years ago
4 0

Answer:

No impairment loss.

Explanation:

Considering SSC as the reporting unit.

The fair value of this unit shall be compared against the book value including goodwill.

Here,

Fair value = $44 million  

Book value including goodwill = $42 million.

From the above information, it was seen that fair value of SSC is greater than the book value of SSC including goodwill.

Hence, there should be no impairment loss recognized by the WebHelper.

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You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about
Semenov [28]

you get out of the car take a photo and get back in and drive

i dont know if you want to use this answer btw

5 0
4 years ago
Which of the following is considered a capital asset for federal income tax purpose?
Alex73 [517]

Answer:

b) Land used in your business

Explanation:

For tax purposes the IRS classifies capital assets as those that have a productive life of more than one year and is not normally sold during the course of a business's operations.

Capital assets are a type of production cost, they are used in the production process to generate revenue.

They are expensed over the useful life of the asset in the form of depreciation.

Land is an example of capital assets for the purpose of federal income tax.

It provides the site of production and is not an item that is sold in the short run. Rather it is used over several years.

5 0
3 years ago
Alicia and Nick are buying a $725,000 home. They have been approved for a 5.25% APR, 30-year mortgage. They made a 20% down paym
UkoKoshka [18]

Answer:

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

Monthly payments =$ 3,202.78

Explanation:

Given

Home Cost=725,000

downpayment= 20% of 725,000

An=725,000 - 0.2 *725,000

An= 580,000

t=30 yrs

n=12 (monthly)

j=5.25% (interest rate)

--> i=j/m

i=0.0525/12

-->n=m*t

n=12*30

n=360

FInd monthly pmts ( R) =?

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

6 0
3 years ago
The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $30,000
dangina [55]

Answer:

A. $21,100

Explanation:

net cash flow year 1 = {[savings year 1 - (depreciation expense year 1)] x (1 - tax rate)]} + depreciation expense year 1

cash flow year 1 = {[$25,000 - ($30,000 x 33.33)] x (1 - 26%)} + ($30,000 x 33.33) = [($25,000 - $10,000) x 0.74] + $10,000 = $11,100 + $10,000 = $21,100

4 0
3 years ago
The inverse demand curve a monopoly faces isp= 130 - QThe firms cost curve isC(q) = 40 + 5Q1. What is the profit Maximizing solu
max2010maxim [7]

Answer:

62.50 units

$3,866.25

Explanation:

The price function is:

p = 130 - Q

C = 40+5Q

Profit as a function of quantity (P(Q)) is given by:

P(Q) = Q*p(Q) - C(Q)\\P(Q) = Q*(130-Q)-40-5Q\\P(Q) = -Q^2+125Q-40

The quantity for which the derivate of the profit function is zero is the profit maximizing quantity:

P(Q) = -Q^2+125Q-40\\P'(Q) =0= -2Q+125\\Q=62.50\ units

The​ profit-maximizing quantity is 62.50 units

The economic profit for this production volume is:

P(62.5) = -(62.5^2)+125*62.5-40\\P(62.5)=\$3,866.25

The firm earns a profit of $3,866.25.

6 0
3 years ago
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