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MakcuM [25]
2 years ago
6

On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock. On that date, the book

values and fair values of Yellow's recorded assets and liabilities were as follows: Book Value Fair Value Cash and Receivables $75,000 $75,000 Inventory 155,000 160,000 Buildings and Equipment (net) 260,000 320,000 Liabilities (150,000) (150,000) Net Assets $340,000 $405,000 Based on the preceding information, the differential implicit in this acquisition is
Business
1 answer:
Damm [24]2 years ago
3 0

Answer:

The differential implicit in this acquisition is $110,000

Explanation:

The computation of the differential implicit is shown below:

Differential implicit = Amount paid - book value

                               = $450,000 - $340,000

                               = $110,000

The differential implicit shows a difference between the amount paid and the book value so we do not consider the fair value which is given in the question

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Where can you find information about the cost of goods sold as well as total
yawa3891 [41]

The adjusted trial balance represents the cost of goods sold as well as total sales. Thus, option D is correct.

<h3>What is the cost of goods sold? </h3>

Cost of goods means the direct cost that is included in the making of the goods. The cost of goods is calculated by adding the purchase price of the commodity and deducting the closing inventory.

A report known as an adjusted trial balance lists all the debit and credit firm accounts exactly as they would appear on the accounting records after reconciliations have been made. Therefore, option D is the correct option.

Learn more about the cost of goods sold, here:

brainly.com/question/14665160

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3 0
1 year ago
Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi
frez [133]

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

3 0
3 years ago
An inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets and equity,
pychu [463]

The correct answer is "ending inventory of one period is the beginning inventory of the next period."

An inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets, and equity, but also the next period's statements because ending inventory of one period is the beginning inventory of the next period.

That is why the manager has to be strict regarding the inventory of a company. Inventory has a cost that can be translated into money. So accountants have to be perfect regarding the inventory. So yes, ann error in keeping the inventory affects the company in that the ending inventory of one period is the beginning inventory of the next period. An internal audit can reveal the mistakes in accurately keeping the inventory. So it is better to put extra attention in the process so nothing wrong would be revealed after the audit.

7 0
3 years ago
What does it mean to “diversify” your portfolio?
Vlad [161]

Answer:

The correct answer is letter "C": Spreading risk by investing your money in a variety of funds and investment options.

Explanation:

Portfolios are <em>pools of different assets that aim lowering the risk inherent in investments</em>. Portfolios tend to be managed by professional who work on behalf of investors an can provide suggestions on what assets to buy and sell according to the fluctuations of the market.

3 0
3 years ago
Can someone buy me an iphone... i rlly need it (IT DOESNT MATTER WHICH KIND OF IPHONE !!!!!!!)
jok3333 [9.3K]

Answer:

I cant

Explanation:

IM A KID I WANT ONE TOOOOO!!!!

5 0
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