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agasfer [191]
3 years ago
15

Dennis Company purchases Miles Company for $4,200,000 cash on January 1, 2015. The book value of Miles Company's net assets repo

rted on its December 31, 2014 financial statement was $3,800,000. An analysis indicated that the fair value of Miles's tangible assets exceeded the book value by $600,000, and the fair value of identifiable intangible assets exceeded book value by $320,000. What amount of gain or goodwill is recognized by Dennis
Business
1 answer:
sveticcg [70]3 years ago
3 0

Answer: $520,000

Explanation:

The amount of gain or goodwill is recognized by Dennis would be calculated as:

Book value of net asset = $3,800,000

Add: Increase in the fair value of Miles's tangible assets = $600,000

Add: Increase in the fair value of identifiable intangible assets = $320,000

Fair value of net asset = $4,720,000

Less: Cash paid for purchase = $4,200,000

Gain = $4,720,000 - $4,200,000

= $520,000

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3. In which decade should you be saving for retirement?
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5 0
3 years ago
is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint. a.
Leto [7]

Answer:

e. All of the above are inputs required for capital budgeting analysis.

Explanation:

All of the given parameters are inputs required for capital budgeting analysis. is an input required for a multinational capital budgeting analysis, given that it is conducted from the parent's viewpoint.

a. Salvage value

Salvage value is the estimated resale value of an asset at the end of its useful life. It is an applicable cashflow in investment appraisal

b. Price per unit sold

This is the parameter used to calculate the amount of revenue which is the first line of cashflows in an investment appraisal

c. Initial investment

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d. Consumer demand

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3 0
3 years ago
Karen Wilson Construction Company is considering the acquisition of a new bulldozer. Big Tools, Inc. has offered to lease the eq
zlopas [31]

Answer:

a) 175,437.77

b)

\left[\begin{array}{ccccc}Year&Beg Principal&Interest&Installment&Ending\\1&175437.77&15789.4&-24500&166727.17\\2&166727.17&15005.45&-24500&157232.62\\3&157232.62&14150.94&-24500&146883.56\\4&146883.56&13219.52&-24500&135603.08\\5&135603.08&12204.28&-24500&123307.36\\6&123307.36&11097.66&-24500&109905.02\\7&109905.02&9891.45&-24500&95296.47\\8&95296.47&8576.68&-24500&79373.15\\9&79373.15&7143.58&-24500&62016.73\\10&62016.73&5581.51&-24500&43098.24\\\end{array}\right]

\left[\begin{array}{ccccc}11&43098.24&3878.84&-24500&22477.08\\12&22477.08&2022.94&-24500&0.02\\\end{array}\right]

(I split into two arrays as I couldn't put  the entire information into one)

c) because of the time value of money the principal generates interest over time making the installment pay up both concept principal and interest.

d) they decrease as the principal decreases over time as the lease payment exceeds the interest accrued over the year.

Explanation:

a) it will record at the present value of the lease payment annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 24,500

time 12

rate 0.09

24500 \times \frac{1-(1+0.09)^{-12} }{0.09} = PV\\

PV $175,437.7693

b)

we build the table starting withthe beginning lease value

calcualte the interest accrued over the year and subtract the lease payment

this makes a new balance of the loan principal which start the process again until it is fully paid.

5 0
3 years ago
Suppose that the real exchange rate between the United States and Brazil is defined in terms of baskets of goods. Other things t
tia_tia [17]

Answer: an increase in the quantity of Brazilian currency that can be purchased with a dollar.

Explanation: An increase in the price of the Brazilian currency in relation to the dollar will increase the real exchange rate. This is because the exchange rate tells the amount of Brazilian baskets a US basket can buy.

The best option to relate the exchange rate with is an increase in the purchasing power of the dollar.

5 0
3 years ago
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