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GenaCL600 [577]
3 years ago
14

On August 31, 2010, Wood Corp. issued 100,000 shares of its $20 par value common stock for the net assets of Pine, Inc., in a bu

siness combination accounted for using the acquisition method. The market value of Wood's common stock on August 31 was $36 per share. Wood paid a fee of $160,000 to the consultant who arranged this acquisition. Costs of registering and issuing the equity securities amounted to $80,000. No goodwill was involved in the purchase. What amount should Wood capitalize as the cost of acquiring Pine's net assets?
Business
1 answer:
KATRIN_1 [288]3 years ago
6 0

Answer: <u><em>$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.</em></u>

Given:

Wood Corp. issued 100,000 shares of its $20 par value

The market value of Wood's common stock on August 31 was $36 per share.

Wood paid a fee of $160,000 to the consultant who arranged this acquisition.

Costs of registering and issuing the equity securities amounted to $80,000.

∴ Cost of acquiring =  100,000 shares issued × $36 per share

= $3,60,000

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Answer: 500kg

Explanation:

Economic Order Quantity (EOQ) is the amount of units that should be added by a company to its inventory so.as to reduce total inventory cost.

From the question, the economic order quantity will be calculated as:

Drmqnd per year will be:

= 250 days/$0.04

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The annual carrying cost per unit will be:

= $0.04/250

= $10/year

Ordering cost = 100

EOQ =[√(2×12500×100)/10]

= √2500000/10

= ✓250000

= 500 kg

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Answer:

the answer is C

Explanation:

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Answer:

The correct answer is letter "D": Exploits the economies of scale and learning.

Explanation:

Transnational strategies imply companies taking their products to different regions in the world and adapting them to each market. It is the opposite of the global strategy of entering a market by which a corporation offers the same product over all the territories where it handles operations.

<em>One of the main objectives of the transnational strategy is to lower production costs by using economies of scale, meaning production becomes more efficient providing manufacturers cost advantages. Besides, the company looks for learning diverse domestic strategies that can also be implemented in other regions keeping in mind each of them would have its own features.</em>

3 0
4 years ago
In east icicle, minnesota, on the northern edge of the corn belt, the growing season is short and the soil is poor. corn yields
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The answer is marginal costs in both places are the same. This is because the farmers in both places are profit-maximizers, the value in each flat is equal to MC or Marginal Cost and subsequently the market of corn is competitive, the price of corn in both places is the same. Also, marginal costs are higher in East Icicle than in Corncrib can also be a possible answer. For any given outflow per acre Corncrib’s corn yield are far better than in East Icicle, at any level of output, the marginal cost per acre in East Icicle must be higher in Corncrib, which suggests that in equilibrium the output level of corn in East Icicle is less than the output level of corn in Corncrib.

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3 years ago
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Answer:

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Explanation:

We have the formula for economic order quantity is:

EOQ = Square root of ( 2 x S x D / H)

in which: S ordering cost;

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               H: carrying cost

For the law office to act at optimal level by ordering EOQ at 65 units a time, The ordering cost will be found be the equation:

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Thus, the ordering cost will be $38.  

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