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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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Gonzales Corporation generated free cash flow of $88 million this year. For the next two years,the companyʹs free cash flow is e
vodka [1.7K]

Answer:

A) $1384.24

Explanation:

Terminal Value = Free Cash Flow (FCF) of last forecast *(1+ perpetual growth rate)/(discount rate – perpetual growth rate)

FCF of last forecast = $88*(1+10%)^2 = $106.48

Gonzales Corporationʹs expected terminal enterprise value in year 2 = $106.48 * (1+4%)/(12%-4%) = $1382.24

6 0
3 years ago
A high-school student, mows lawns for families in his neighborhood. the going rate is $12 for each lawn-mowing service. would li
BlackZzzverrR [31]
The event that will happen if he raised his price is If Kyle raises his price he will lose all of his customers. All of the people want to buy product who is low costing because they can save much money and they hate buying things that is so much expensive. The answer to this question is  if Kyle raises his price he will lose all of his customers.
6 0
3 years ago
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fu
Dima020 [189]

Answer:

standard price= $5

Explanation:

Giving the following information:

Quantity of direct materials used 3,000 lbs. Actual unit price of direct materials $5.50 per lb. Units of finished product manufactured 1,400 units Standard direct materials per unit of finished product 2 lbs.Direct materials quantity variance-unfavorable $1,000Direct materials price variance-unfavorable $1,500.

Direct material price variance= (standard price - actual price)*actual quantity

-1,500= (SP - 5.5)*3,000

15,000=3,000SP

5= standard price

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1400*2 - 3,000)*5

Direct material quantity variance= 1,000 unfavorable

5 0
3 years ago
When evaluating advertising results, what technique can be used to measure consumer's beliefs or feelings about a product before
dolphi86 [110]

When evaluating advertising results, the Attitudinal measure technique can be used to measure consumers' beliefs or feelings about a product before and after exposure to the ad.

<h3>What are Pre-testing and post-testing in advertising?</h3>

Pre-testing and Post-testing. Pretesting is testing the advertisement before running it so that the likelihood of preparing the most effective ads, by allowing an opportunity to detect and eliminate weaknesses or flaws increases. Post-testing is done after the advertisement is run on the media.

Advertising Research – 4 Important Types: Product Appeal, Advertising Message, Advertising Media Selection, and Advertising Effectiveness Research.

To learn more about post-testing visit the link

brainly.com/question/17238720

#SPJ4

8 0
2 years ago
Quanti Co., a calendar-year taxpayer, purchased small tools for $5,000 on December 21, Year 1, representing the company’s only p
Jlenok [28]

Answer: Option A is the right answer

Explanation:  Evidences in most cases has shown that MACRS  is all about applying convention for one and a half year on assets. So when an entities owns 35-40% of an asset in forth quarter, Mid quarter convention will  be applied for only one half of the last quarter, logically one and half month in the last quarter.

6 0
4 years ago
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