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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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1. Explain the concept of opportunity cost with an appropriate example.<br>​
inn [45]

Answer:

Concept & example of Opportunity Cost

Explanation:

Opportunity Cost is the cost of next best alternative foregone, while choosing an alternative. This arises because of 'choice' problem, due to unlimited wants & limited resources - having alternative uses.

Eg : If I can have 2 chapatis or a bowl of rice. And, I eat a bowl of rice. Then, 'opportunity cost' of a rice bowl is - the next best available '2 chapattis' foregone for the former.

4 0
3 years ago
Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the populat
andreev551 [17]

The answer is sociocultural dimension. This dimension is being defined as somewhat the individual all access to progress, completion and even obstacles in which is one way of putting importance to it as this shows an individual’s way of encompassing factors that may go in his or her way.

7 0
3 years ago
Green Garden Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an es
Nata [24]

Answer:

There is a loss on disposal of $10000 and option C is the correct answer.

Explanation:

The units of production method charges depreciation based on the activity level that the asset is used for during a period

The depreciation rate under this method is,

Depreciation per hour = (240000 - 40000) / 10000  =  $20 per hour

The depreciation for the Year 2015 and 2016 under the units of production method is,

2015 = 20 * 2400 = $48000

2016 = 20 * 2100 = $42000

The accumulated depreciation at the end of 2016 is = 48000 + 42000 = $90000

The carrying value at the end of 2016 is = 240000 - 90000 = $150000

The gain/loss on disposal = 140000 - 150000 = - $10000 or a loss of $10000

7 0
3 years ago
Nathan bought 200 shares of stock at $40 per share ($8,000 total). He paid $5,000 in cash and borrowed $3,000 from the brokerage
yan [13]

If Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose <u>$650</u>.

<h3>What is buying on margin?</h3>

Buying on margin is a situation when an investor buys an asset by <u>borrowing the balance </u>from the brokerage firm.

With buying on margin, the investor pays part of the investment cost while the remaining is met by the broker.

<h3>Data and Calculations:</h3>

Cost of 200 shares at $40 per share = $8,000

Investor's cash = $5,000

Margin purchase = $3,000

Interest rate = 6%

Interest amount = $90 ($3,000 x 6% x 1/2)

Commission = $160

Total amount spent = $8,250 ($8,000 + $90 + $160)

Total amount realized from sale = $7,600 ($38 x 200)

Loss from sale = $650 ($7,600 - $8,250)

Thus, if Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose <u>$650</u>.

Learn more about margin accounts at brainly.com/question/17328883

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5 0
2 years ago
Which of the following statements would a follower of Adam Smith be most likely to make?
Maksim231197 [3]

Answer:

D. If people are given the freedom to follow their own interests, theoretically their efforts will lead to economic growth that benefits society as a whole.

6 0
3 years ago
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