Answer:
The differential implicit in this acquisition is $110,000
Explanation:
The computation of the differential implicit is shown below:
Differential implicit = Amount paid - book value
= $450,000 - $340,000
= $110,000
The differential implicit shows a difference between the amount paid and the book value so we do not consider the fair value which is given in the question
Answer:
Time value of money
Explanation:
The ability of money kept in a savings deposit to earn interest over time and the increase in the total interest in line with the length of time, brought us to a conclusion that <em>an amount of money to be received now, that is in the present, is worth more than the same amount if received in the future.</em>
The increase in the value of money as a result of interest earned on it, increases the value of money, this concept is what is referred to time value of money.
Answer:
Interest receivable 480 Interest revenue 480
Explanation:
The adjusting entry is shown below:
Interest receivable Dr 480 ($9,000 × 8% × 8 months ÷ 12 months)
To Interest revenue 480
(Being the interest receivable is recorded)
The interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
The eight months are considered from May 1,2018 to December 31,2018
Answer:C
Explanation:
Educated guess. Proper understanding of the environment helps to make informed decisions
I think the answer is C. Individual work in the process accounts are maintained for each production department of manufacturing process.
