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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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There can be many departments or just a few when _____ a business.
Cerrena [4.2K]

Answer:

it depends on the business

Explanation:

when the business is small there will be less department but if the business is big then there will be more department

4 0
2 years ago
Read 2 more answers
New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny finan
Vlada [557]

Answer:

Please consider the following explanation.

Explanation:

Bob is correct in this case as Penny didn't make a claim that the goods were non-conforming. Penny is incorrect. Since there was no claim of non conformance, Bob doesn't have to refund the $3.000.

8 0
3 years ago
How do you know if you are eligible to open and make contributions to a Roth IRA?
Whitepunk [10]

Answer:

The correct answer is letter "B":You have to earn below a certain amount to make contributions .

Explanation:

A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.

7 0
3 years ago
What are the continuing costs of this apartment? Security Deposit $1,000 Application Fee $25 First Month’s Rent $850 Electricity
vekshin1
Answer= $1025 monthly (continuing costs)

Security Deposit $1,000
Application Fee $25
First Month’s Rent $850 $850
Electricity $80 per month; 80
$40 to connect and $100 deposit
Telephone approximately $60 per month; 60
$40 to connect Water $35 per month; 35
a deposit of $50. ____
$1025
6 0
3 years ago
Joni Hyde Inc. has the following amounts reported in its general ledger at the end of the current year.
Schach [20]

Answer:

90,000

Explanation:

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.

Trademarks                                                 = 15,000

Excess of cost over the fair value of net

identifiable assets  (Goodwill)                     = 75,000

Total intangible assets                                 = 90,000

4 0
3 years ago
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