Answer: $214000
Explanation:
The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:
Book value of net assets = $1923000
Add: Excess fair value of tangible asset = $190500
Add: Excess fair value of intangible assets = $142500
Fair value of net assets = $1923000 + $190500 + $142500 = $2256000
Therefore, Goodwill will be:
=Cash paid for purchase - Fair value of net assets
= $2470000 - $2256000
= $214000
Answer:scientific approach
Explanation:scientific approach is a process of collecting fact and applying
Logical decision technique. It involves the use of big data to source for relevant data for decision making. When using scientific method in business,you must determine the research goal,without a clear research goal you will not be able to draw conclusion from the gathered data from the research.
scientific approach in business involves investigation,evaluation,experimentation,interpretation and theorizing for effective decision making.
Answer:
Debit Notes Payable $45,000; debit Interest Payable $750; debit Interest Expense $750; credit Cash $46,500
Explanation:
The journal entry is given below:
Notes payable $45,000
Interest payable ($45,000 × 10% × 60 ÷ 360) $750
Interest expense ($45,000 × 10% × 60 ÷ 360) $750
To Cash $46,500
(Being payment of notes payable is recorded)
here note payable, interest payable, interest expense is debited as it increased the expenses and decreased the liabilities while on the other hand the cash is credited as it decreased the assets
Answer:
$10,020
Explanation:
The computation of the large amount that should be deposited is shown below:
Future value of annuity is
= Annuity × [(1+rate)^time period-1] ÷ rate
= Annuity × [(1.045)^45-1] ÷ 0.045
= Annuity × 138.8499651
Future value = Present value (1 +interest rate)^number of years
where
= $15,000 × (1.045)^45
Now
The total future value: is
$1,500,000 = $15,000 × (1.045)^45 + Annuity × 138.8499651
$1,500,000 = ($15,000 ×7.24824843) + Annuity × 138.8499651
Annuity = ($1,500,000 - $108,723.7264) ÷ 138.8499651
= $10,020
Answer:
The one that has been operating for the past ten years.
Explanation:
This is so because, the bank will consider it of factors which will include:
1. the stage in the life cycle of the company.
2. the credit risk level of the company.
3. the attractiveness of the company to investors.
4. the going concern assumption of the company.
Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.
However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.
