This is a profit, which increases next year's budget.
Answer:
The amount of goodwill that is recorded by Large is $5 million
Explanation:
Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.
Net assets in the sense implies the fair value of total assets less fair value of liabilities.
Fair value of total assets is $9 million
Fair value of liabilities is $3 million
As a result net assets upon acquisition is $6 million($9 million less $3 million)
Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).
The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition
Answer:
d. doesn’t have an employer-sponsored pension or retirement plan.
Explanation:
The Pension Protection Act provides for the benefit of employees, which is through their own and employer contributions.
This is a policy to provide benefit at times when the person turns old or is not physically fit to perform any job and this, provides pension in terms of money.
Here, if Seng being a single mother is not eligible for this, means that she did not had any employer who could sponsor her for such plan.
As this pension plan had to be sponsored by the employer Seng might did not had any employer.
Answer:
B. will be guilty of taking a secret profit if he does not disclose to the landlord
Explanation:
Acceptance of any gifts or payments in return for fixing up a contract and or acting as a middleman in negotiating a deal constitutes a bribe or a kickback.
In the given case, the carpet seller is willing to give project manager, super bowl tickets in return for facilitating the large order from the landlord.
Here, the landlord is not aware of this scheme and if the property manager accepts such gifts without informing the first party i.e the landlord, would amount to making secret profits.
Thus, in compliance with right ethical practices, it is the duty of the project manager to inform the landlord of the gift and it's nature before accepting any of those.
