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Rus_ich [418]
2 years ago
12

In 2010,Chesley Inc. acquired Corrigan Ltd. in a hostile takeover. However, the expected synergies never materialized. In 2013,

Chesley decided to write-off $45 million of Goodwill on the financial statements to recognize that the Goodwill had become impaired.Which of the following items would be decreased by the impairment of Goodwill?
a- Total Assetsb- Net Incomec- Cash from Operating Activitiesd- Cash from Financing Activitiese- Cash from Investing Activities
Business
1 answer:
Evgesh-ka [11]2 years ago
7 0

Answer:

a- Total Assets

Explanation:

Impairment write downs are not cash related events but an accounting entry made to reduce the carrying amount when Carrying Amount of an Asset is found to be greater than the Recoverable Value of the Asset.

Carrying Amount of an Asset is Cost less Accumulated depreciation of an asset. While the Recoverable Value of the Asset is the higher of Fair Value and Value in use of an asset.

Therefore, only Total Assets decrease as a result of impairment of Goodwill.

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Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day i
Paraphin [41]

Answer:

Correct option is (d)

Explanation:

Capacity refers to the amount of goods that a plant or organization can produce. Maximum capacity refers to the total number of goods produced at maximum efficiency.

In this case, Joe's plant could produce 1,000 items if all conditions are met, which means when the plant is at its highest efficiency. This states the maximum capacity of the plant.

7 0
2 years ago
Are cities around the world doing a disservice to their citizens or their visitors, or both, by banning uber outright from opera
Ne4ueva [31]

Answer:

In my opinion they can be a big problem because if you can not use the uber in some community it's useless but they are banning ubers because the taxis business are loosing money and the uber is replacing the taxi business.

There is an own opinion question, so try to answer by yourself

4 0
3 years ago
The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
Digiron [165]

Answer:

a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

Explanation:

To calculate the rate of inflation/deflation, we have to divide by the oldest price index.

The second year, the variation of the price index was:

\Delta PI/PI=\frac{PI_2-PI_1}{PI_1}=\frac{100-110}{110}=\frac{-10}{110}=-0.909=-9.1\%

This means a 9.1% deflation.

The third year, the variation of the price index was:

\Delta PI/PI=\frac{PI_3-PI_2}{PI_2}=\frac{96-100}{100}=\frac{-4}{100}=-0.04=-4\%

This means a 4% deflation.

8 0
3 years ago
What are some characteristics of an informal group?
Nana76 [90]

Answer:

Hajj and Umrah packages which are not

5 0
3 years ago
21. A noncancelable lease contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's e
Tanzania [10]

Answer: A. Sales-type lease

Explanation:

A Sales type lease is one where the present value of all the lease payments of the Asset being leased is more than the cost/ carrying amount of the Asset.

The present value of the lease Payments is the Fair Value of the asset and as seen from the question, the fair value of the asset is more than the cost of the Asset. The lease will therefore be accounted for as a Sales type lease by the lessor.

It is worthy of note that this entry affects only the lessor.

7 0
3 years ago
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