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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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When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

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6 0
1 year ago
A federal bank examiner came to a bank in Jacksonville. He audited the books and he checked out the staff and the office facilit
babymother [125]

Answer:

Eminent domain for the public good.

Explanation:

He charged the branch manager because he didn't see eminent domain for public use.

In eminent domain the government, the government the government has the power to take private property for public use.

The bank is a public place and as such are required to have a public domain that is members of the public or for civic use. Such a party is likely going to be for public use or it could be delegated to third parties.

3 0
3 years ago
As the marketing manager of BargainSmartphones, you're so committed to offering the best bargains that you're willing to show ot
Mekhanik [1.2K]

Answer:

personalization.

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7 0
3 years ago
Kyoko is managing a team of people who are working on a critical project. she wants to use positive reinforcement, but the days
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When people’s days are busy they need to prioritize their tasks and do the ones that are the most important. Kyoko needs to make the use of positive reinforcement one of their priorities for the day. Another thing to consider is doing positive reinforcement while doing something else. For instance, praising the quality of someone’s work while doing another task.

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3 years ago
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Answer:

a. 2 years

b. 1 year

c. 12 times

Explanation:

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Compounding period = number of times interest would be paid. In the question, this is a year. So interest would be paid every year

The compounding frequency - it is the number of times the deposit would be compounded. It is 12 months

The future value of the deposit can be determined using this formula :  

FV = P (1 + r/m)^nm

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R = interest rate  

N = number of years

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8 0
3 years ago
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