Complete question:
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a. 150,000
b. 250,000
c. 0
d. 120,000
e. 170,000
Answer:
150,000
of goodwill should be attributed to the non-controlling interest at the date of acquisition
Solution:
A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.
Now , Calculate the amount
Cost(PP) - 1,600/0.8 = 2,000
FV - 1,850
GW = 1,850 - 2,000
= 150,000
Answer:
About 250 ; 2000 bicycles
Explanation:
Opportunity cost simply means the loss incurred on a certain option when the alternative opruoonos chosen.
The opportunity cost of increasing shoe production from 10,000 to 20,000 pairs
The value of 20,000 (x axis) on the y axis is about 3750
Value of point A in the y - axis = 4000
Hence opportunity cost = (4000 - 3750) = 250 bicycles
B.)
The opportunity cost of increasing shoe production from 50,000 to 60,000 pairs
The value of 60,000 (x axis) on the y axis is about 0
Value of point B in the y - axis = 2000
Hence opportunity cost = (2000 - 0) = 2000 bicycles
Answer:
The correct option is C,$795,000
Explanation:
The consolidated inventory of Allister and Barone at year end 31st December is the sum of their individual inventories minus the allowance for unrealized profit on intra-group sales of $180,000
Allowance for unrealized =amount of unsold inventory/total sales*profit on sale
amount of unsold =10%*$180,000=$18,000
total profit on the sale=sales price-cost=$180,000-$130,000=$50,000
allowance for unrealized profit=$18,000/180,000*50,000=$5,000
Consolidated inventory=$500,000+$300,000-$5,000=$795,000
Answer: A Corporation, because she will need financing to get started.
Explanation:
As Annabeth would like to buy a factory to begin making the parts, she would would need a huge cash outlay to get started. By starting a Corporation, she can raise cash easier from the shareholders as well as utilize the knowledge and expertise of others who will join the company to help her in areas she might not be well versed in such as in Accounting or business administration.
Another reason a Corporation would be better is because of the realization of her longer term plans. A Corporation is more likely to expand in the the future which will enable Annabeth realize her dreams of selling to Europe and South America. Indeed, she has a better chance of achieving that sooner rather than later.
Answer:
$1,522
Explanation:
For computing the future value, first we have to determine the simple interest which is shown below:
= Principal × rate of interest × time period
= $1,000 × 5.8% × 9 years
= $522
Now the future value would be
= Principal amount + Simple interest
= $1,000 + $522
= $1,522
First, we simply applied the simple interest formula then we compute the future value by adding the principal amount and the simple interest
