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Lana71 [14]
3 years ago
8

Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisit

ion cost includes an earnings contingency, valued at $1 million at the date of acquisition. Within the measurement period, additional information on Southern's expected future performance at the date of acquisition reveals that the earnout actually had a fair value of $200,000 at the date of acquisition. The entry to record the new information includes a credit of $800,000 to:
Business
1 answer:
azamat3 years ago
3 0

Answer:

Dr Earnings contingency liability $800,000

Cr Goodwill $800,000

Explanation:

Based on the information given the appropiate journal entry to record the new information includes a credit of $800,000 to:Dr Earnings contingency liability $800,000 and Cr Goodwill $800,000 reason been that the acquisition cost is lesser.

Dr Earnings contingency liability $800,000

Cr Goodwill $800,000

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Arisa [49]

If Xerox commercializes PC technology and its rivals do not Xerox payoff is expected to be $250m, whereas the competitors’ payoff is $75m.

<h3>What is game theory?</h3>

This is the game strategy that involves two players where each of the players have to pick the most favorable choice based on the choice of the other person.

Here it would be best for Xerox to pick option B because this is where they would be able to get the most advantage.

Read more on game theory here:

brainly.com/question/13548182

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<h3>Complete question</h3>

Game theory can help us understand why Xerox did not successfully exploit the opportunity it had inIT. If both Xerox and competitors continue with old technology the payoff for XeroxSelect one:a.

is $150m, whereas the competitors’ payoff is $325m.

b. is $2

50m, whereas the competitors’ payoff is $75m.

c.

is $75m, whereas the competitors’ payoff is $250m.

d.

is $325m, whereas the competitors’ payoff is $150m.

3 0
1 year ago
What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?
salantis [7]
The effective interest rate on a discounted note is
.. 1/(1-r) = 1/0.9 ≈ 11.11%

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5 0
3 years ago
On december 31, planet company acquired 80% of the voting common stock of star company by issuing 100,000 shares of its own comm
zavuch27 [327]

Answer:

Building with fair value of $150,000

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The Building with fair value of $150,000 was the only balance sheet item existing thus this is ultimately the Net Identifiable Assets that would be eliminated.

6 0
3 years ago
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On the contrary, elastic demand is the one in which a variation in the price leads to an important variation in the quantity bought by consumers, and that means the fraction is higher than 1. So if I sell the product at a lower price, I will sell much more product.
Considering the formula: R = P*Q, when demand is elastic, I will have much more sold quantity with just a little lower price, which leads to a higher revenue.
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