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olchik [2.2K]
3 years ago
10

Assume Aircastle reported $20 million in goodwill on its acquisition of Broadvision. Assume the fair value of the earnout in agr

eement 1. declines by $0.5 million during the first year following the acquisition. Prepare the journal entry made by Aircastle to record the value change, assuming
Business
1 answer:
hoa [83]3 years ago
4 0

Answer:

Journal Entry

Dr. Contingent Consideration Liability $500,000

Cr. Goodwill $500,000

Explanation:

It is assumed that the decline in the fair value is the correction of the acquisition entry. It means due to this event the consideration liability and goodwill are overstated we need to rectify the balances.

Hence,

The contingent consideration liability will be debited to reduce the liability and goodwill will also be decreased by crediting the goodwill account.

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Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti
algol13

Answer:

$577 Unfavorable

Explanation:

The calculation of spending variance for dye costs is shown below:-

Spending variance for dye cost = (Standard rate - Actual variable) × Actual units

= ($0.67 - $13,910 ÷ 19,900) × 19,900

= (0.67 - 0.69899) × 19,900

= $577 Unfavorable

Therefore for computing the spending variance for dye costs we simply applied the above formula.

6 0
3 years ago
Altoon Manufacturing's records were partially destroyed in a flood. The company does not know what sales have been for the year,
Masteriza [31]

Answer:

a. $164,000

Explanation:

The computation of the Altoon Manufacturing's sales for the year until the flood is given below:

= Cash collections + ending receivables - opening receivables

= $158,000 + $25,000 - $19,000

= $164,000

hence, the Altoon Manufacturing's sales for the year until the flood is $164,000

Therefore the first option is correct

7 0
3 years ago
Why do we record Direct deposits into the CPJ
Oksi-84 [34.3K]

Explanation:

Because those payments are done for creditors, repayment of loans and other expenses

6 0
2 years ago
All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to
VMariaS [17]

Answer: 1. Deliverables

2. Objectives

Explanation: A deliverable is a project management term that describes tangible or intangible goods or services that are produced from the project, with the intention of being delivered to a consumer.

An objective in this context is a goal that an enterprise aspires towards achieving.

In every enterprise each section is tasked with producing outputs within each department, and deliver to customers. The intention is to of achieve the overall objectives set by the enterprise. Functions are designed to operate cohesively, with the aim of achieving these 2 aspects and ensuring that the enterprise runs smoothly and generates the best possible outcome.

7 0
3 years ago
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
Dahasolnce [82]

A. the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

The adjusted trial balance includes things like accrued revenues that weren't yet recorded, depreciation, unearned revenues and more.

8 0
3 years ago
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