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umka21 [38]
3 years ago
10

PDX Corp. acquired 100% of the outstanding common stock of Sea Corp. in a business combination accounted for using the acquisiti

on method. The cost of the acquisition exceeded the fair value of the identifiable assets and assumed liabilities. The general guidelines for assigning amounts to the inventories acquired provide for
Business
1 answer:
Misha Larkins [42]3 years ago
7 0

Answer:

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

Explanation:

Acquisition Accounting tells about how to report accounts and with what amount in a consolidated financial statements. It also helps in assigning values to goodwill, NCI and combined business operations like Marketing, Selling, Manufacturing costs, etc.

Under Acquisition Accounting the net assets are always valued at their fair market value and the inventory is reported at:

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

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When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total de
Lady_Fox [76]

Answer: All three methods result in the same amount of total depreciation

Explanation:

Depreciation is when the value of an asset has been reduced because the asset has been used or due to wear and tear.

When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total depreciation is the straight line method, the double declining balance method, and the activity method.

Therefore, option the answer will be that "all three methods result in the same amount of total depreciation". This is because the amount charged for depreciation can not exceed the cost involved and will be identical for the three methods

4 0
3 years ago
Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o
svp [43]

Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

                                            = $4,000 + 24,000 + 16,000 + 12,800 - 48,000

                                             = $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

                         = $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

5 0
3 years ago
Economies of scale exist when the long run average cost curve:
IgorLugansk [536]

A. falls is the best option

7 0
3 years ago
A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010
QveST [7]

Answer:

19%

Explanation:

Given that,

Nominal GDP in 2010 = $200 billion

Nominal GDP in 2009 = $180 billion

GDP deflator in 2010 = 125

GDP deflator in 2009 = 105

Percentage change in prices:

= Percentage change in GDP deflator

= (Change in GDP deflator ÷ GDP deflator in 2009) × 100

= [(125 - 105) ÷ 105] × 100

= (20 ÷ 105) × 100

= 0.19 × 100

= 19%

Therefore, the prices increases by 19%.

6 0
3 years ago
If during 2011 the Republic of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and
Otrada [13]

Answer:

$12 billion.

Explanation:

Given: Value added during 2011= $78 billion.

           Total sales= $90 billion.

Intermediate goods are the goods used to produce final product and it is not included in the calculation of GDP, however, it is included in the value of final goods.

Now, finding the value of intermediate goods purchased.

Intermediate goods= Total\ sales - Total\ value\ added

⇒ Intermediate goods= \$ 90\ billion - \$ 78 \ billion

∴ Intermediate goods= \$ 12\ billion

Hence, value of intermediate goods purchased is $12 billion.

7 0
3 years ago
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