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11111nata11111 [884]
3 years ago
14

The balance sheet of Subsidiary shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and

the fair value of its liabilities is $15,000. Parent paid $95,000 to acquire Subsidiary. Parent should record goodwill on this purchase of:______.
A) $23,600.
B) $20,000.
C) $3,600.
D) $5,000.
Business
1 answer:
Andrews [41]3 years ago
8 0

Answer:

b. $20,000

Explanation:

Goodwill = Investment in Subsidiary - (Asset With book value - Liability with book value) - (Fair value of Asset - Book value of Asset)

Goodwill = $95,000 - ($86,400 - $15,000) - ($90,000 - $86,400)

Goodwill = $95,000 - $71,400 - $3,600

Goodwill = $20,000

So, parent should record goodwill on this purchase of $20,000

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To choose the best training method, a company should consider such factors as the number of people to be trained, the cost of tr
Nikitich [7]

Answer:

TRUE

Explanation:

Training and development describes the formal, ongoing effort that are made within organizations to improve the performance and self-fulfillment of their employees through a variety of educational methods and programs.

In order to choose the best training method, there are some factors that a company should consider. These factors include:

Number of people to be trained: people can learn more effectively in small groups, and, consequently, less effective in larger ones.

The cost of training: training budget is very essential in the decision process because training can take a lot of resources: money, materials, equipments e.t.c)

The objectives of training: the goal or objectives will vary depending on the organization and the kind of activities the organization plans to do during work.

Therefore, it is TRUE that to choose the best training method, a company should consider such factors as the number of people to be trained, the cost of training, and the objectives of the training.

8 0
3 years ago
What is the percentage return on a stock that was purchased for $48.40, paid a $1.67 dividend, and was then sold after one year
Marysya12 [62]

Answer:

-1.10%

Explanation:

Calculation for percentage return on a stock

Stock percentage return=$46.20 + 1.67 - 48.40)/$48.40

Stock percentage return= = -.0110*100

Stock percentage return=-1.10%

Therefore the percentage return on a stock is -1.10%

7 0
3 years ago
How did trickle-down economics claim to increase government tax revenues?
chubhunter [2.5K]
<span>How did trickle-down economics claim to increase government tax revenues? By lowering tax rates. Lower tax rates helps the people by giving them a tax break that the wouldn't otherwise get. Paying taxes becomes expensive and it helps those when taxes decrease because they are able to keep more of their income and afford more than they would be able to otherwise. </span>
5 0
4 years ago
E
KonstantinChe [14]

Answer:

c is correct on

Explanation:

6 0
2 years ago
Read 2 more answers
Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th
lara [203]

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

6 0
3 years ago
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