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Novay_Z [31]
3 years ago
14

Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, exc

ept the fair value of the investee's identifiable noncurrent assets is $30,000 higher than book value. In addition, the investee's pre-transaction tax bases in its individual net assets approximate their reported book values. This difference relates entirely to tax-deductible items. Assume the marginal tax rate is 40% for the investor and investee. What amount of goodwill should be reported in the investor's consolidated balance sheet prepared immediately after this business combination
Business
1 answer:
Ludmilka [50]3 years ago
6 0

Answer:

$57,000

Explanation:

Calculation for the amount of goodwill should be reported

Total assets $270,000

Less Liabilities ($120,000)

Book value $150,000

($270,00-$120,000)

Acquistion price $225,000

Less Book value ($150,000)

excess price over book value 75,000

($225,000-$150,000)

Allocated to non current assets $18,000

(30000*(1-.4))

Goodwill (75000-18000) $57,000

Therefore the amount of goodwill should be reported is $57,000

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A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an ann
labwork [276]

Answer:

$1,498.86

Explanation:

Given that;

Packing of crates per month(u) = 779

Annual carrying cost of 39% of the purchase price per crate

Ordering cost (S) = $27

D = 779 × 12 = $9,348 crates per year

H = 0.39P

H = 0.39 × $12

H = $4.68 crates per year

Total ordering cost = D/Q × S

= ( $9,348 / 779 ) × $27

= $324

Total Holding cost = Q / 2 × H

= ( 779 / 2 ) × $4.68

= $1,822.86

Annual savings = Total holding cost - Total ordering cost

= $1,822.86 - $324

= $1,498.86

The firm would be saving $1,498.86 annually.

5 0
3 years ago
The current interest rate on a savings account is 1.85%. The current inflation is 1.9%. What is the real dollar return on this a
kogti [31]
1.67 is the correct answer
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How does increasing the skater's mass change the skater's:
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If the skaters weight changes he will get heavier or lighter. He wouldn’t move as fast or as slow
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3 years ago
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The following information is available for Marigold Corp.: Allowance for doubtful accounts at December 31, 2019 $23000 Credit sa
vladimir1956 [14]

Answer: $20500

Explanation:

Bad debt is the amount of money that a credit owes the company and is not willing to be paid hence may not be collected.

The amount that Marigold should record as "bad debt expense" for the year ended December 31, 2020 goes thus:

Bad debt allowance balance needed =

$16700

Add: Bad debt that are written off = $26800

Less: Allowance for doubtful accounts = $23000

Bad debt expense will now be:

= $16700 + $26800 - $23,000

= $43500 - $23000

= $20500

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