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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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Your Godmother left you an inheritance of ​$100,000​, payable to you when you turn 26 years old. You are now 21.​ Currently, the
KIM [24]

Answer:

The offer should be accepted

Explanation:

It is known that the amount $100,000 will be paid to someone when he turns 26 years. The current age is 21 years.

the 5-years bond is given 3.1 percent of interest rate.

another option for the person is offered $103,021.02 right away which is the present value.

The present value of the $100,000 that is going to be received after 5 years is calculated as follows;

Present value =  Amount to be received /(1+interest rate/100)^t

                        = 100,000/(1+ 3.1/100)⁵

                         = 100,000/ 1.031⁵

                         = $85,843.35

Therefore, the present value is $85,843.35 for the amount $100,000 to be receive after five years.

Since the amount  $103,012.02 he was offered is greater than the present value of his inheritance after 5-years, the person should accept the offer  and forget about the inheritance of $100,000.

6 0
3 years ago
The bookkeeper for Mustang Company forgot to make the end-of-the-period adjustment for the interest expense that had accrued dur
yawa3891 [41]

Answer:

C Liabilities are understated, and net income is overstated.

Explanation:

To accrue for interest expense, the required entries are;

Debit Interest expense (p/l)

Credit Accrued Interest (B/s)

Being entries to recognize accrued interest expense.

If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.

Hence the right answer is C Liabilities are understated, and net income is overstated.

4 0
2 years ago
Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is a
Solnce55 [7]

Answer: Razor and blade strategy

Explanation:

The Razor Blade Model is a model that is used by companies to deeply discount or give away a core product hoping that the consumers will buy the more expensive and complementary dependent products.

The razor and blades business model is a model whereby one item is sold at a cheaper price or sometimes given for free so as to increase the sales of its complementary good. For example, ink catridges are required for inkjet printers and software and accessories are used for game consoles. So, selling ink catridges at a low rate can lead to more sales for inkjet printers.

7 0
3 years ago
Compare Franklin Roosevelts ( a democrat) actions concerning the economy in the 1930s with Ronald reagans (a republican) actions
steposvetlana [31]
Franklin Roosevelt's economic plans were to help the people by giving them things such as social security, lowering poverty rates, increasing wages and similar, while Ronald Regan's plan was to reduce tax rates so as to increase production and the overall wealth of the people. From this we might conclude that while Roosevelt wanted to help prevent poverty and help the people by through direct means, Regan wanted to help people by helping their employers who would in turn help their employees due to accumulated wealth.
4 0
2 years ago
In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the c
NemiM [27]

Answer:

True

Explanation:

Stock ownership plans refer to those plans whereby the existing employees are provided with an opportunity to purchase the stocks of the company at a lower price than they are offered in the open market

Employee stock option plans are one of the stock ownership plans. The condition for availing such plans is usually the length of the service of the employees. The benefit is recorded as an employee compensation.

In the context of big organizations with innumerable employees, employees may not be able to identify themselves as significant and may consider those with major chunk of shareholdings as the ones whose actions affect the stock price.

This being merely an illusion since collective efforts of all the employees affect the company's stock price.

8 0
2 years ago
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