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enyata [817]
3 years ago
11

Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $9,036,000, including $864

,000 of Goodwill. The fair value of the subsidiary is $8,100,000. The fair value of the subsidiary's individually identifiable net assets is $7,740,000. The subsidiary has only one reporting unit, which is the same as the overall entity.1. For this fact set, determine whether Goodwill is impaired.2. Prepare the required journal entry if you determine Goodwill is impaired.
Business
1 answer:
andrew-mc [135]3 years ago
5 0

Answer:

The impairment amount will be "$504,000". A further explanation is below.

Explanation:

The given values are:

Goodwill,

= $864,000

Subsidiary fair value,

= $8,100,000

Subsidiary's individually identifiable net assets,

= $7,740,000

Now,

(1)

The impairment amount will be:

= Goodwill-(Subsidiary \ fair \ value-Identifiable \ net \ assets)

On substituting the values, we get

= 864,000 - (8,100,000- 7,740,000)

= 864,000-360,000

= 504,000 ($)

(2)

The journal entry is:

<u>Description                                  Debit                       Credit</u>

Equity income                          $504,000

Equity investment                                                  $504,000

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DENIUS [597]

Answer:

Market Testing Stage

Explanation:

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Dawn graduated from high school and wants to get a credit card. how can dawn establish credit-worthiness?
yanalaym [24]
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The market price of xyz corporation common stock is $55 and its quarterly dividend is $0.60. what is the stock's current yield?
eduard

The market price of XYZ corporation common stock is $55 and its quarterly dividend is $0.60. 4.36% is the stock's current yield.

A stock's current yield is determined by dividing the annual dividend by the stock's current market price. In this example, the stock's annual dividend is found by multiplying the quarterly dividend of $0.60 by 4. This equals $2.40. So the current yield is 4.36% ($2.40 ÷ $55).

Common stock is a class of stock that represents ownership of a company. Holders of common stock, called shareholders, are entitled to: Voting rights to elect directors. Normally a shareholder can cast one vote for each share he owns.

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4 0
2 years ago
How can communicators show respect and communicate effectively and positively with people in other cultures?
taurus [48]

<u>Answer:</u>

<em>C. By allowing members of the other culture to understand your role within their culture </em>

<u>Explanation:</u>

  • <em>Look to get it. </em>
  • <em>Try not to make assumptions. </em>
  • <em>Keep a receptive outlook. </em>
  • <em>Evade generalizations. </em>
  • <em>Start with who you know. </em>
  • <em>Go to multicultural systems administration occasions. </em>
  • <em>Get involved. </em>
  • <em>Keep your statement.  </em>
  • <em> Accept positive expectation. </em>

This is the way communicators show regard and impart successfully and decidedly with individuals in different societies, By enabling individuals from the other <em>culture to comprehend your job</em> inside their way of life.

8 0
3 years ago
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 28,000 shares of 6%, $50 par, cumulati
Shalnov [3]

Answer:

basic earnings per share = $1.14

diluted earnings per share = $1.02

Explanation:

net income = $178,905

preferred stocks = 28,000 x 6% x $50 = $84,000

January 1, 100,000 shares outstanding x 12/12 = 100,000

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September 30, sold 5,800 treasury stocks x 3/12 = 1,450

total weighted average stocks = 83,117

diluted stocks = [($48 - $38) / $48] x 48,000 = 10,000

basic earnings per share = (net income - preferred dividends) / weighted average stocks = ($178,905 - $84,000) / 83,117 stocks = $1.14

diluted earnings per share = (net income - preferred dividends) / (weighted average stocks + diluted stocks) = ($178,905 - $84,000) / (83,117 + 10,000 diluted stocks) = $1.02

3 0
3 years ago
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