1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna11 [10]
3 years ago
6

Kelly Corporation acquires all of the assets and liabilities of Lawson Co. at an acquisition cost that is $50 million above the

fair value of identifiable net assets acquired. Three months after the acquisition, it is determined that because of a downturn in the economy after the acquisition, acquired brand names with indefinite lives are worth $5,000,000 less than originally estimated. The entry to reflect this new information includes:
Business
1 answer:
bija089 [108]3 years ago
3 0

Answer: A. A credit to goodwill of $5,000,000

Explanation:

When a company is bought for more than the fair value of its identifiable net assets, the premium paid is called goodwill. If after the acquisition, it is discovered that one of the reasons for coming up with that goodwill is no longer viable, the goodwill can be reduced or impaired.

This is the case here. The brand names are worth less than they should so goodwill will have to be adjusted downwards to reflect that. As goodwill is an asset, reducing it would mean crediting it so goodwill should be credited by the $5,000,000 amount.

You might be interested in
Sdj, inc. , has net working capital of $1,120, current liabilities of $6,133, and inventory of $844. What is the current ratio?
IgorC [24]

NWC = 1,410 = Current Assets – Current Liabilities = CA - 5,810

=> CA = 1,410 + 5810 = 7,220

Current Ratio = Current Assets/Current Liabilities

= 7,220/ 5,810 = 1.24

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

= (7,220 – 1,315)/ 5,810 = 1.02

Current ratio is 1.67

Quick ratio = 0.88

In general, an appropriate current ratio is one that is comparable to the industry norm or just a little bit higher. The likelihood of distress or default may be increased by a current ratio that is lower than the industry average.

In a similar vein, if a company's current ratio is significantly higher than that of its peer group, it suggests that management might not be making the most use of its resources.

To learn more about Current Ratio here

brainly.com/question/1114476

#SPJ4

8 0
2 years ago
What type of receivable is evidenced by a formal instrument and normally requires the payment of interest? A trade receivable An
ladessa [460]

Answer:

A note receivable

Explanation:

A note receivable is a composed guarantee to get a particular measure of money from another gathering on at least one future dates. This is treated as a benefit by the holder of the note. Past due records receivable are some of the time changed over into notes receivable, in this manner giving the indebted person more opportunity to pay, while additionally once in a while including an individual assurance by the proprietor of the account holder.

7 0
4 years ago
Manuel is training for a triathlon, a timed race that combines swimming, biking, and running.
NARA [144]

Answer:

1) The cost of something is what you give up to get it

Explanation:

Manuel is giving up earning $ 12 in his job for an hour swimming. Where he also has to pay an entrance fee of $ 4 for the pool. The real cost to him for swimming an hour is: $16.

8 0
4 years ago
Read 2 more answers
Carly knows that according to ________, if she administers positive reinforcement or avoidance learning, her employees will tend
Yuri [45]

Answer:

Law of effect

Explanation:

This law was developed by Edward Thorndike

When Responses are followed by satisfaction, it causes people to become more attached to a situation. This is likely going to cause these people to continue doing things as they are doing them now. This is why if Carly uses positive reinforcement, her employees will do their jobs same way they are doing it now.

Conversely, if the situation is followed by discomfort, that is she uses punishments or extinction, the

employers will disconnect themselves from doing their jobs the same way they have been doing it.

7 0
3 years ago
Read 2 more answers
Companies within the oneworld, Star, and Sky Team alliances have also engaged in major mergers and acquisitions (M&A): Ameri
Zanzabum

Answer:

Check the explanation

Explanation:

Merger and acquisition. It is a general terminology used to mention consolidation of firms merger that takes place when two businesses join together to form a new organization.

While Acquisition is the buying of one firm by another company.

The following are the benefits of merger and acquisition in the airlines industry:

• Executes economies of scale

• Help obtain coordination effect

• Competitors restriction

• Improved resources allocation

The following are the drawbacks of merger and acquisition in the airlines industry:

• Cultural mismatch among companies during merger

•Antitrust

• Placing risk of acquired workers  

5 0
4 years ago
Other questions:
  • Insurance is a financial service that allows a
    13·2 answers
  • Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31,
    5·1 answer
  • An agent is selling a new issue of a non-exempt security to a customer. In order to make it easier for the customer to understan
    8·1 answer
  • Cheyenne is the manager of a local small hotel. just today cheyenne received word that a major convention will be coming to town
    13·1 answer
  • When joshua proposed​ cross-training his employees so absences and vacations would not pose such a problem in​ productivity, his
    8·2 answers
  • EA4.
    10·1 answer
  • 11 True or False: Alcohol has to be broken down by the digestive system. True OFalse​
    13·2 answers
  • Suppose that on further analysis you decide that after year 5 McDonald’s earnings and dividends will grow by a constant 4% a yea
    13·1 answer
  • Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the selling price for a steak dinner she
    8·1 answer
  • In March, gross earnings of Perlman Company totaled $250,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemploym
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!