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astra-53 [7]
3 years ago
15

Carla Vista Company purchases Sandhill Company for $2470000 cash on January 1, 2021. The book value of Sandhill Company’s net as

sets, as reflected on its December 31, 2020 balance sheet is $1923000. An analysis by Carla Vista on December 31, 2020 indicates that the fair value of Sandhill’s tangible assets exceeded the book value by $190500, and the fair value of identifiable intangible assets exceeded book value by $142500. How much goodwill should be recognized by Carla Vista Company when recording the purchase of Sandhill Company?
Business
1 answer:
Nady [450]3 years ago
3 0

Answer: $214000

Explanation:

The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:

Book value of net assets = $1923000

Add: Excess fair value of tangible asset = $190500

Add: Excess fair value of intangible assets = $142500

Fair value of net assets = $1923000 + $190500 + $142500 = $2256000

Therefore, Goodwill will be:

=Cash paid for purchase - Fair value of net assets

= $2470000 - $2256000

= $214000

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Answer: The answer is No, because the MB > MC

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They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,

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3 years ago
Mission Foods produces two flavors of tacos, chicken, and fish, with the following characteristics:
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Answer:

1. $858,000

2. Chicken = 24,000 units and Fish = 36,000 units

Explanation:

The computation is shown below:

1. The anticipated level of profits for the expected sales volumes is

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= 200,000 × ($3 - $1.50) + 300,000 × ($4.50 - $2.25) - $117,000

= $300,000 + $675,000 - $117,000

= $858,000

2. The break even volume is

Let we assume the sale units be X

So, total units sold for chicken = 40X

And, for the fish it is = 60X

Sale units of chicken × (Selling price per taco - Variable cost per taco) + Sale units of chicken × (Selling price per taco - Variable cost per taco) = Total Fixed cost

0.40X × (3 – 1.50) + 0.60X × (4.50 – 2.25) = $117,000

0.60X + 1.35X = $117,000

1.95X = $117,000

So, the X is 60,000 units

So for chicken it is 60,000 × 40% = 24,000 units

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7 0
3 years ago
The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10 percent for the next
Rzqust [24]

Answer:

The annual worth of the overhead costs for 7 year-period is

A = $389743.42.

<em>Then the time value of the annual worth is discounted by 8%</em>

∴  $389743.42 x 0.08 = $31179.47.

Explanation:

Using the formula

A = P(1 + r/n){nt}

Where:

A = ?

t = 7

P = $200,000.00

r = 10%

n= 1

TVM =8%

∴ A = $200,000.00(1 + 0.10/1){1 * 7}

A = $200,000.00(1.10){7}

A = $200,000.00(1.9487171)

A = $389743.42

<em>Then the time value of the annual worth is discounted by 8%</em>

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8 0
3 years ago
Read 2 more answers
Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 wit
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When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.

<h3>What is the meaning of current value?</h3>

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Putting the given value and solving further we get,

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Hence, the significance of current value is aforementioned.

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