A(n) _________ occurs when one company buys the property and obligations of another company.

Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill impairment. At December 31, 2020 Aja

Sedaia [141]

Answer:

Baxter

The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:

= $130,000.

Explanation:

a) Data and Calculations:

Recorded Goodwill = $330,000

Book value of net assets = $400,000

Book value of all assets = $730,000 ($400,000 + $330,000)

Estimated fair value of company = $600,000

Goodwill impairment = $130,000 ($730,000 - $600,000)

b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.

7 0

2 years ago

Exchange rate shifts that cause the Sing$ to be weaker versus than the Brazilian real:

Luden [163]

Answer:

make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to negative/favorable exchange rate cost adjustments.

Explanation:

Exchange rate is defined as the rate at which one currency can be exchanged with another. It determines balance of trade, that is the amount of one countrie's goods that can be exchanged for another one's.

When exchange rate causes Sing$ to be weaker versus than the Brazilian real, it results in more of the Sing$ used to purchase one Brazilian Real.

Export of footwear from Asia-Pacific plants to Latin America will be more expensive, so it will be less competitive.

8 0

3 years ago

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

ollegr [7]

Answer:

Bad debt expense A/c Dr $4,900

To Allowance for doubtful debts $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr $4,900

To Allowance for doubtful debts $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given - credit balance of allowance for doubtful debts

= $920,000 × 0.6% - $620

= $5,520 - $620

= $4,900

6 0

3 years ago

Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and the market expected rate of r

kondaur [170]

Answer:

B) overpriced

Explanation:

Please see attachment

8 0

3 years ago

Paula is considering the purchase of a new car. She has narrowed her search to two cars that are equally appealing to her. Car A

wolverine [178]

Answer:

Paula should purchase car B.

Explanation:

If Paula purchases car A, then her total payments will be $22,000 ($458.33 per month).

If instead she purchases car B, she will need to finance $20,200 for 3 years and her monthly payments will be $447.11. Total payments = $447.11 x 48 = $21,461.28.

this is an ordinary annuity and in order to calculate the monthly payment you must:

monthly payment = principal / annuity factor (PV, 0.25%, 48 periods) = $20,200 / 45.17869 = $447.1134511 = $447.11.

6 0

3 years ago