Answer:
Intangibles = $1150,000 and Down Home Foods will record Goodwill equal to $575,000
Explanation:
A) Value on Intangible assets (Goodwill+Patent) = Total Assets - Tangible Assets
=$7,500,000 - $6,350,000 = $1150,000
Intangibles = $1150,000
B) Down Home Foods will record Goodwill in its books.
Value of Goodwill = Purchase Consideration - (Total Tangible Assets + Market Value of Patents)
= $7,500,000 - ($6,350,000+$575,000) = $575000
Down Home Foods will record Goodwill equal to $575,000
The Answer would be A, B, C!
The reason is because it is always important to tie the ladder for unnecessary that could become harmful movement!
Also you must ensure a coworker is present for extra support on the ladder!
Last you must always choose the right ladder because there are many different ladders for different jobs, using the wrong one might become harmful!
Hope this helps!
Answer:
1. Issuance of bonds
Cash-flow classification: Financing activity
2. Sale of equipment
Cash-flow classification: Investing activity
3. Amortization expense
Cash-flow classification: Operating activity
4. Purchase of treasury stock
Cash-flow classification: Financing activity
5. Receipt of dividends on investment
Cash-flow classification: Operating activity
6. Purchase of land
Cash-flow classification: Investing activity
Answer:
Explanation:
First scenario: The answer is No, not many sellers. The drug of the pharmaceutical company has patent right and it is the only firm selling this product. This makes the company a monopolist (single seller)
Second scenario: No, not an identical product. Cable company and phone company produce different products. Cable companies majorly deal with television access.
Third Scenario: no, not many sellers. One firm is dominating the market and customers prefers this. Its product has been differentiated and it can charge its own price.
Fourth scenario: yes,meets all assumptions. The socks are identical and consumers do not care about the seller because the same utility will be derived from the socks.
Answer: $20,000
Explanation:
To calculate Citicorp's profit or loss we can use the following formula,
The Citigroup's profit is computed as shown below:
= Exercise Price - Spot Price + Premium received
= $ 0.59 - $ 0.60+ $ 0.02
= $ 0.01 per euro is Citicorp's profit.
Total profit will therefore be:
= $ 0.01 x 2,000,000
= $ 20,000
$20,000 is Citicorp's profit on the call option.
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