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wlad13 [49]
3 years ago
15

The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each

Business
1 answer:
gregori [183]3 years ago
8 0

Answer: See attachment

Explanation:

Check the attachment

For (a),

Common shares = $800,000 × 1.5

= $1,200,000

b. Fair value of assets = $2640000

Less: Fair value of liabilities = ($720000)

Net value of S. Ltd = $1920000

Purchase consideration = $220000

Goodwill on acquisition = $2,200,000 - $1,920,000 = $280,000

d. Fair value of assets acquired = $2,640,000

Less: fair value of liabilities acquired = ($720,000)

Net value of S. Ltd = $1,920,000

Purchase consideration = 1,000,000 + (400,000 × 1.5) = 1,000,000 + 600,000 = 1,600,000

Bargain purchase = $1,920,000 - $1,600,000 = $320,000

See attachment for further explanation

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_____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.
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Answer:

C) Business marketing

Explanation:

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When a company engages in B2B transactions, they are selling their products or services to another business or individual that will resell them to individual consumers. For example, Nike sells shoes to Foot Locker, and then Foot Locker resells them to final consumers.

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3 years ago
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During the current year, Adams Assembly, Inc., recorded credit sales of $1,300,000. Based on prior experience, it estimates a 1
OleMash [197]

Answer:

a. Debit Allowance for doubtful debt $4,000

   Credit Accounts receivable.      $4,000

Being entries to write off debt that had been provided for.

b. Debit bad debit expense                      $13,000

   Credit Allowance for doubtful debt       $13,000

Being entries to record bad debt expense for the current year.

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales.

Based on assessment, some or all of the receivables may be uncollectible.  

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Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

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3 years ago
Match each situation with the method of government intervention used to rectify it.
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Sage Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $384,300. The estimated fair val
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Answer: See explanation

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