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Nastasia [14]
3 years ago
9

On Dec 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwill of $225,000. As part of its an

nual review of good will impairment, the entity determined that the fair value of the reporting unit was $3,310,000. The entity assigned $3,170,000 of the reporting units fair value to its assets and liabilities other than goodwill. What is the goodwill impairment loss to be reported on Dec 31 under current US GAAP
Business
1 answer:
hoa [83]3 years ago
4 0

Answer:

$85,000

Explanation:

Calculation for the goodwill impairment loss to be reported on Dec 31 under current US GAAP

First step is to calculate the Goodwill implied fair value

Goodwill implied fair value=($3,310,000-$3,170,000)

Goodwill implied fair value=$140,000

Now let calculate the Impairment loss using this formula

Impairment loss = Goodwill implied fair value - Goodwill book value

Let plug in the formula

Impairment loss= $140,000 - $225,000

Impairment loss = $85,000

Therefore the goodwill impairment loss to be reported on Dec 31 under current US GAAP is $85,000

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What is the market capitalization of Company ABC with a most recent stock price of $11.25, and the company has 8.1 million share
meriva

Answer:

$91.125 million

Explanation:

Data provided in the question:

The Recent stock price of Company ABC = $11.25

Number of shares of common stock outstanding = 8.1 million

Now,

The market capitalization of Company ABC

= stock price × Number of shares of common stock outstanding

or

The market capitalization of Company ABC = $11.25 × 8.1 million

or

The market capitalization of Company ABC = $91.125 million

6 0
3 years ago
Walton Company paid $94,000 to purchase a machine on January 1, 2017. During 2019, a technological breakthrough resulted in the
Sidana [21]

Answer and Explanation:

The computation of total avoidable costs is shown below:-

<u>Particulars              Keep old machine        Buy New machine</u>

Opportunity cost of

buying the old

machine                          $44,000

Purchase amount                                                    $117,000

Operating expenses     $208,000

($52,000 × 4 years)

Operating expenses

($7,000 × 4 years)                                                   $28,000

Total avoidable costs       $252,000                     $145,000

b. The new machine cost is lower to the lower one so it can be replaced.

3 0
3 years ago
What did andy davis do to change eddies behaviour?
shtirl [24]

Answer:

The Manager Andy Davis worked hard to improve Eddie's behavior and skills by implanting commitment in improving Eddie through team-based efforts.

Explanation:

5 0
3 years ago
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be
frez [133]

Answer:

x=0.25

Explanation:

Assuming that consumers value every non-defective car at $10,000 each, only defective used cars are for sale. Therefore, consumers value defective cars at $2,000.

The expected value of a new car is given by the defective new car rate (x) multiplied the defective value, added to the non-defective car rate (1-x) multiplied by the non-defective car value.

EV = 8,000= 2,000x + 10,000(1-x)\\x=\frac{2,000}{8,0000}\\ x=0.25

The fraction x is 0.25. That is, 25% of new cars sold are defective.

3 0
3 years ago
Sandia Inc. Wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straig
Tju [1.3M]

Answer:

c.$37,737

Explanation:

Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]

PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322

PV of Cost of Buying = $262,434

Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))

PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)

PV of Cost of Leasing = $224,697

Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing

Net advantage to leasing = $262,434 - $224,697

Net advantage to leasing = $37,737

7 0
3 years ago
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