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3 years ago

Goodwill generated internally should be:__________

1 answer:

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Answer: c. is the difference between the fair value of the net tangible and identifiable intangible assets and the purchase price of the acquired business.

Explanation:

Question is not formatted correctly as it is asking for the definition of goodwill, not goodwill generated internally.

Goodwill is the difference between the net identifiable total assets of a company and the purchase price of that same company. It is essentially a premium paid on the book value of the company and it is influenced by a number of things such as location, customer base, profit potential and others.

The company that did the buying will then incorporate this goodwill into their own books. This is why companies that have a lot of goodwill on their books have usually been involved in acquisitions.

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In the Month of March, Digby Corporation received orders of 128 units at a price of $15.00 for their product Daze. Digby uses th

Montano1993 [528]

Answer:

$1,290

Explanation:

The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are

the cost of goods delivered or service rendered can be measured reliably
good/services were delivered/rendered in the month

This is irrespective of whether cash was collected or not under the accrual method.

Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized

= 86 * $15

= $1,290

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3 years ago

Warnerwoods Company uses a perpetual inventory system.

Liono4ka [1.6K]

Answer:

gross profit under FIFO = $40,570 - $25,220 = $15,350

gross profit under LIFO = $40,570 - $26,340 = $14,230

gross profit under weighted average = $40,570 - $26,240 = $14,330

gross profit under specific id. = $40,570 - $26,070 = $14,500

Explanation:

sales revenue = (290 x $86.60) + (160 x $96.60) = $40,570

COGS under FIFO:

130 x $51.60 = $6,708

160 x $56.60 = $9,056

80 x $56.60 = $4,528

80 x $61,60 = $4,928

total COGS = $25,220

COGS under LIFO:

240 x $56.60 = $13,584

50 x $51.60 = $2,580

160 x $63.60 = $10,176

total COGS = $26,340

COGS under weighted average:

weighted average = [(130 x $51.60) + (240 x $56.60) + (100 x $61.60) + (180 x $63.60)] / 650 = $58.31

450 x $58.31 = $26,239.50 ≈ $26,240

COGS under specific method:

80 x $51.60 = $4,128

210 x $56.60 = $11,886

60 x $61.60 = $3,696

100 x $63,60 = $6,360

total COGS = $26,070

8 0

3 years ago

a. Compute the expected rate of return for Acer common stock, which has a 1.5 beta. The risk-free rate is 4.5 percent and the

ira [324]

Answer:

(a) 12.75%

Explanation:

Given that,

Beta = 1.5

Risk-free rate = 4.5 percent

Expected return on market portfolio = 10 percent

Here, we are using CAPM:

(a) Expected rate of return for Acer common stock:

= Risk free rate + beta (Expected return on market Portfolio - Risk free rate)

= 4.5% + [1.5 (10% - 4.5%)]

= 0.045 + (1.5 × 0.055)

= 0.045 + 0.0825

= 0.1275 or 12.75%

(b) This rate is known as the fair rate which compensates the holder or investor for assuming the risk associated with it and for the time value of money.

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3 years ago

Joji is a 37-year-old married business owner. He runs a dry cleaning service with three locations in Toledo, Ohio. His personal

Tems11 [23]

Answer:

Explanation:

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3 years ago

The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of

eduard

Answer:

$480,000 and $125,000

Explanation:

The computation of the divisional income from Retail division and Commercial division is shown below:

Hardy Corporation

Divisional Income from operations

Particulars Retail Division Commercial Division

Sales $2,150,000 $1,200,000

Less: Cost of goods sold $1,300,000 $800,000

Gross profit $850,000 $400,000

Less:-Selling expenses $150,000 $175,000

Other expenses $220,000 $100,000

($320,000 × 2750 hours ÷ 4,000 hours) (320000 × 1,250 hours ÷ 4000 hours)

Income from operations $480,000 $125,000

We simply deduct the all expenses from the sales so that the divisional income from operations could come

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3 years ago