Answer:
Annual depreciation= $28,940
Explanation:
Giving the following information:
Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,150 at the end of five years.
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Annual depreciation= 2* [(78,500 - 6,150)/5]= $28,940
Answer:
the net income for the year 2022 of Swifty is $71000
Explanation:
The computation of the net income is shown below:
As we know that
The net income is
= revenues - expenses
= $743,000 - $672,000
= $71,000
Hence, the net income for the year 2022 of Swifty is $71000
We simply applied the above formula so that the correct value could come
Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m
