All categories

3 years ago

Which of the following statements regarding the accounting for business combinations is false?

Business

1 answer:

steposvetlana [31]3 years ago

7 0

Answer:

Option A

Explanation:

Although goodwill is the difference between the consideration transferred by the acquirer to the acquiree it is not the fair value of the identifiable assets acquired rather it is the fair value of the net assets acquired.

The difference is fair value of identifiable assets is the value of the assets at some point of time which is expected to provide some future benefits.

The fair value of the net assets acquired is the total of the fair value of net assets minus liabilities.

You might be interested in

Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount repor

myrzilka [38]

Answer:

Specter Co.

The amount reported on the year-end balance sheet for cash and cash equivalents is:

= $31,100.

Explanation:

a) Data and Calculations:

Cash deposit in checking account = $16,000

Bond investment due in 20 years = $46,000

US Treasury bill due in 1 month = $11,500

3-year loan to an employee = $850

Currency and coins = $3,600

Accounts receivable $1,150

Cash and Cash Equivalents:

Cash deposit in checking account $16,000

US Treasury bill due in 1 month 11,500

Currency and coins 3,600

Total cash and cash equivalents = $31,100

b) Cash and Cash Equivalents are Specter's assets that are in the form of cash (currency and coins) and Specter's assets that can be readily converted into cash (Treasury bills and notes, commercial papers. certificates of deposit, money market funds, and cash management pools).

4 0

3 years ago

Suppose that Jack and Hal and Sophia enter into an agreement to sell the restaurant. The contract includes the non-competition a

ycow [4]

Answer: D Your welcome.

5 0

3 years ago

Dell Technologies Inc. Is an integrated IT infrastructure company that brings together hardware, software, and services. Some of

Readme [11.4K]

Answer:

the second sentence read agian

Explanation:

6 0

3 years ago

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowe

UNO [17]

Answer:

Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).

So Lionel will be able to deduct $1,650 as interest expense (above the line deduction).

Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.

7 0

3 years ago

Suppose that the quantity of DVD players sold increased from 200 to 400 when the price fell from $225 to $175. Over this price r

Nataly_w [17]

Answer:

Option D.

Explanation:

Given information:

$Q_1=200, Q_2=400$