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kondor19780726 [428]
3 years ago
6

Lowell Corporation paid $80,000 to acquire all of Boston Company's net assets. Boston reported assets with a book value of $60,0

00 and fair value of $98,000 and liabilities with a book value and fair value of $23,000 on the date of combination. Lowell also paid $3,000 to a search firm for finder's fees related to the acquisition. What amount will be recorded as goodwill by Lowell Corporation while recording its investment in Boston
Business
1 answer:
Pavel [41]3 years ago
3 0

Answer:

Lowell Corporation

The amount that will be recorded as goodwill by Lowell Corporation to record its investment in Boston is:

= $5,000.

Explanation:

a) Data and Calculations:

Investment in Boston Company = $83,000

Fair value of assets = $98,000

Fair value of liabilities  23,000

Net value of assets = $75,000

Goodwill = $5,000 ($80,000 - $75,000)

b) Acquired Goodwill is the difference between the cost of purchasing Boston Company ($80,000) and the net identifiable assets of Boston Company ($75,000).  The net identifiable assets are calculated by subtracting the fair value of the liabilities from the fair value of the assets.

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The __________ theory of a business's duties to consumers claims that a business has four main moral duties: the basic duty of
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Answer:

Contractual

Explanation:

The complying with the terms of a sales contract, and the secondary duties of theory of a business's duties to consumers claims that a business has four main moral duties.

4 0
3 years ago
Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the f
Alina [70]

Answer:

$21.44

Explanation:

Calculation for the cost per equivalent unit for materials for the month in the first processing department

First step

Units completed and transferred out $7,500

Ending inventory($800+$8,400-$7,500)*70% Ending inventory =1,700*70%

Ending inventory =$1,190

Equivalent units for Materials $8,690

($7,500+$1,190)

Total materials costs $186,300

Second step

Cost per equivalent unit for materials=Total materials costs÷ Equivalent units for Materials

Cost per Equivalent unit for Materials $186,300÷$8,690

Cost per Equivalent unit for Materials=$21.44

Therefore the cost per equivalent unit for materials for the month in the first processing department is closest to $21.44

8 0
4 years ago
A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following state
iVinArrow [24]

Answer:

a. The bond’s expected capital gains yield is zero.

Explanation:

Since the bonds are issued at par so capital gains yield is zero.

5 0
3 years ago
Read 2 more answers
Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided t
Ivanshal [37]

Answer:

putting a halt on the layoffs

Explanation:

This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.

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3 years ago
An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i
Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

PresentValue=\frac{Coupon}{r}

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Therefore, present value of the security = \frac{170}{0.09} = $1,888.89

4 0
3 years ago
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