Answer:
$7.5 million
Explanation:
Fair value of acquired asset = $14.6 million
Fair value of liabilities = $2.6 million
Fair value of net assets = $14.6 million - $2.6 million = $12 million
Purchase price = $19.5 million
Fair value of identifiable asset = $12 million
Amount paid for goodwill = Purchase price - Fair value of identifiable asset
Amount paid for goodwill = $19.5 million - $12 million
Amount paid for goodwill = $7.5 million
Answer:
False
Explanation:
The preparation of journal entries is very important in transaction recording process, it is utilized in recording transactions either to the general ledger or via subsidiary ledger into the accounting system.
When preparing journal entries two fields are very important, the account title also called account name and the account number or account code. To prevent accounting or recording error, the account codes are selected using the drop-down menu which displays the account title or account name. This enables the account clerk to verify before posting.
Answer:
The correct option C
Explanation:
Independent contractor are those people or individuals like lawyers, auctioneers, dentists, sun- contractors, accountants, public and contractors who are in the trade, profession or business independently and offer their services to the general public.
The relationship among the corporation and legal counsel and the relationship among the corporation and general counsel is the valid relationship.
So, the relationship which is not independent contractor is between or among the lawn service business and the homeowner.
Answer:
The answer is: $1,075
Explanation:
Part A has the following unit costs:
- 50 units x 5$ per unit = $250
- 50 units x $4.50 per unit = $225
Part B has the following unit costs:
- 75 units x 6$ per unit = $450
- 75 units x $6.50 per unit = $487.50
Part C has the following unit costs:
- 160 units x 3$ per unit = $480
- 160 units x $2.50 per unit = $400
If we use the lower cost of market method to value the company's ending inventory we have to choose the lowest possible price for parts A, B and C.
ending inventory = $225 (part A) + $450 (part B) + $400 (part C) = $1,075