1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
11111nata11111 [884]
2 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]2 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

You might be interested in
Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because t
Artyom0805 [142]

Answer:

.D.complementary products

Explanation:

A complementary good is a product whose usage is dependent on the availability of another. Complementary goods are, therefore, goods that are used together.  For example, A and B will be complimentary goods if the use of A will require the use of B.

Yachts and docks are complementary products because a yacht will require a dock as the base of its operation.  Without a dock, yacht operations will be almost impossible. Bill is not making good sales on big yachts because potential customers cannot find sufficient docking space. Other examples of complementary goods are car and petrol,  printers and ink cartridges, guns and bullets, and DVD players and DVD disks.

5 0
3 years ago
g n a process cost system, 108,000 units of a product are assembled in Department F with total product cost (DM, DL, and FO) $90
ivolga24 [154]

Answer:

Journal Entry

Debit Department G Work in Process $90,000

Credit Department F Work in Process $90,000

To record the transfer of product cost from Department F to Department G.

Explanation:

a) Data and Calculations:

Number of units assembled in Department F = 108,000

Total product cost (DM, DL, and FO) = $90,000

Additional inspection cost in Department H = $26,000

Total product cost = $116,000 ($90,000 + $26,000)

Transfer of product cost from Department F to Department G:

Department G Work in Process $90,000

Department F Work in Process $90,000

4 0
2 years ago
Which of the following should you NOT wear to an interview?
natulia [17]

Answer: I think Anything tight, bright, short, or sheer should absolutely be avoided.

Explanation:

5 0
2 years ago
As the manager of Margarita Mexican​ Restaurant, you must deal with a variety of business transactions. Provide an explanation f
Shalnov [3]

Answer:

A. Debit Equipment and credit Cash.

  • You purchase equipment and you pay in cash.

B. Debit Dividends and credit Cash.

  • You paid cash dividends.

C. Debit Wages Payable and credit Cash.

  • You paid wages that you owed to your employees. Generally wages are paid at the end of the week and not all months end on a weekend. So you must record wages payable until you actually pay the wages.

D. Debit Equipment and credit Common Stock.

  • You received equipment in exchange for common stock.

E. Debit Cash and credit Unearned Revenue.

  • You received cash in advance for some food that you will deliver in the future.

F. Debit Advertising Expense and credit Cash.

  • You incurred in advertising costs and you paid them in cash.

G. Debit Cash and credit Service Revenue.

  • You sold meals and your clients paid you in cash.

7 0
3 years ago
In the circular flow model, households provide<br> to firms. This is represented by the letter A.
Lana71 [14]

Households would provide factors of production to firms.

  • The circular flow demonstrates the movement of money in the economy.
  • The two-sector model of circular flow comprises households and firms.
  • Money first flows from producers to households in return for production services in the form of wages.  
  • Finally, return to producers back in the form of payment for the purchase or expenditure made by households.

<h2>What do you mean by circular flow of money?</h2>
  • The circular flow model demonstrates how money moves through society.
  • Money flows from producers to workers as wages and flows back to producers as payment for products.
  • In short, an economy is an endless circular flow of money.

<h2>What are the two types of circular flow?</h2>

There are two types of circular flow:

  • Real flow: The term real flow means the flow of factor services from households to firms.
  • Similarly, the flow of goods and services from firms to households.
  • Money flow: The money flow refers to the flow of factor payments from firms to households for factor services.

Learn more about the circular flow of money here:

brainly.com/question/24114630

#SPJ10

5 0
2 years ago
Other questions:
  • A retired woman has $180,000 to invest. she has chosen one relatively safe investment fund that has an annual yield of 9% and an
    11·1 answer
  • The particular market segment your company is trying to sell your products or services to is your _________.
    14·1 answer
  • A business owned by two or more people who have unlimited liability is called a
    13·2 answers
  • West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26 percent of his business
    14·1 answer
  • Which of the following statements accurately describes the economic policy of mercantilism?
    10·1 answer
  • A mutual fund manager would use beta as part of the analysis of the funds performance in order to ___________.
    11·1 answer
  • At a rate of 6.5%, what is the future value of the following cash flow stream?
    11·1 answer
  • Rising of inflation rate is under which PESTLE element​
    6·1 answer
  • Mary is 38 years old and many of her friends have gotten into trouble using their credit cards to buy things they can't afford.
    8·1 answer
  • Since stocks can be traded online, which purpose is best served by markets?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!