Answer:
The differential implicit in this acquisition is $110,000
Explanation:
The computation of the differential implicit is shown below:
Differential implicit = Amount paid - book value
= $450,000 - $340,000
= $110,000
The differential implicit shows a difference between the amount paid and the book value so we do not consider the fair value which is given in the question
Answer:
$228,000
Explanation:
Value of the building
= Market price of the shares x Number of shares exchanged
= 12000x$19
=$228,000
Answer:
0.6
Explanation:
Initial Units sold, Q1 = 40 pairs
Initial Price, P1 = $40
Final price, P2 = $20
Final units sold = 60 pairs
Now,
Using the midpoint formula,
the absolute value of the price elasticity of demand
price elasticity of demand = 
or
price elasticity of demand = 
or
price elasticity of demand = 
or
price elasticity of demand = 
price elasticity of demand = 0.6
Answer:
Land, Equipment, and Inventory will be restated on the closing date i.e. December 31, 2020. The rate of the currency exchange from local to foreign currency for equipment is on the day of purchase which is February 1, 2020.
Explanation:
1-Balance sheet items are restated on the closing date.
2-P & L items are restated on the transaction date.
As the items Land, Equipment and Inventory are all the balance sheet items, thus they will be stated on the closing date i.e. December 31, 2020.
Furthermore, the functional currency is foreign currency. Since the equipment is purchased in the domestic currency it has to be translated into the foreign currency at the rate as on the date of purchase i.e; February 1, 2020.
Answer:
The flood shifts the supply to the left.
The increase in healthcare costs shifts the supply curve to the left.
Explanation:
An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.
A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.
