1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Most people across the globe have similar access to technology information. Yes or no? Why?
Digiron [165]
False. A great example would be North Korea compared to the United States. In the United States we have the Freedom to Speech so we also have the the opportunity for news and social media where you can post pretty much anything. North Korea on the other hand lacks informing their own people and their own people lacks a stable and healthy government. We don’t know a lot about North Korea and they don’t know anything at all about us or the rest of the world.
8 0
3 years ago
You need some money today and the only friend you have that has any is your miserly friend. He agrees to loan you the money you
Serggg [28]

Answer:

The correct option is (b)

Explanation:

Given:

Monthly payment for 6 months = $30 per month

Time period = 6 month (6 periods)

Monthly interest rate = 2%

In order to compute borrowed amount, present value of these payments need to be computed which is an annuity as same amount of $30 is paid.

Checking PVIFA table for 2%, 6 periods, annuity factor is 5.6014.

Borrowed amount = Monthly payment × PVIFA(2%,6)

                            = 30 × 5.6014

                            = $168.042

Borrowed amount is $168.042 or $168.22 approximately (difference in value due to annuity factor being rounded off)

                         

6 0
3 years ago
The way the staff looks tells the customer a great deal about the way the organization is managed.
Anni [7]
The answer is true :)
7 0
3 years ago
Mary's a marketing manager for a nationwide restaurant chain. She's considering which channel she should use to advertise her re
Vilka [71]

Answer:

Television

Explanation:

By doing the promotion in a television could be beneficial for the company as most of the audience are habitual to see the television and ofcourse many of them could aware of the company product by seeing the attractive schemes that ultimately benefit to the company and the customers

So in order to upgrade the menu, Mary used traditional channels and to reach to a broad audience, the television is one of the most traditional channel used

8 0
3 years ago
Lax LLC purchased only one asset during the current year (a full 12-month tax year). On August 26 Lax placed in service computer
Elena-2011 [213]

Answer:

$4,000

Explanation:

The asset's recovery period is 5 years and the half-year convention applies.

Therefore :

$20,000 ×0.20 = $4,000.

6 0
3 years ago
Other questions:
  • On december 31, 2017, swan company sold for $150,000 an old machine having an original cost of $170,000 and a book value of $120
    14·1 answer
  • Question on job application ( I believe that rules often limits my productivity? True or not true?)
    15·2 answers
  • My existing business generate $135000 in EBIT. The corporate tax rate applicable to my business is 35%. Deprecaition reported in
    7·1 answer
  • Assume that Sandhill Co. uses a periodic inventory system and has these account balances: Purchases $420,800; Purchase Returns a
    5·1 answer
  • A firm's CFO is considering increasing the target debt ratio, which would also increase the company's interest expense. New bond
    7·1 answer
  • For which pairs of goods is the cross-price elasticity most likely to be positive? a. peanut butter and jelly b. bicycle frames
    5·2 answers
  • Presented below are definitions of certain terms. Select the appropriate term from the dropdown list. Definitions 1. Quantity of
    10·1 answer
  • Paradise Travels is an all-equity firm that has 9,000 shares of stock outstanding at a market price of $27 a share. Management h
    6·1 answer
  • If gross margin on a product is 25% what is the corresponding markup percentage​
    8·1 answer
  • How might a company go about finding the right inventory control strategy?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!