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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

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Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment? The orthodox answ
NeTakaya

Answer:

The answer is: E) It would not necessarily be considered high elsewhere

Explanation:

Usually the inflation rate in the US and Europe is around 1-3%. In the early 1980's the US inflation rate was above 10% so it was considered huge. But if you consider it against inflation rates in other countries, like Argentina for example, which currently has an annual inflation rate of over 60% then it wasn't that big. During the 1980's many countries suffered from hyperinflation, with monthly inflation rates of over 50%.

So the high inflation rate in the US and Europe wasn't necessarily high for other countries.

5 0
3 years ago
How does inclusivity practised inclusivity in a private company​
Sergio [31]

How does inclusivity practised inclusivity in a private company​.

4 0
2 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
2 years ago
The long-run aggregate supply curve shifts right if:
Pani-rosa [81]

The long-run collective supply curve shifts right if productivity increases or the price of key inputs decrease. It makes the combination of the lower inflation, higher output and lower unemployment.

<h3 /><h3>What is aggregate supply?</h3>

Aggregate supply is also called total output, it is the total production of the goods and services within an economy at the overall price at the given period.

The main two elements of aggregate supply are consumption and saving. The sum up of the national supply is the consumption expenditure and savings.

Thus, The long-run collective supply curve shifts right if productivity

For more details about aggregate supply, click here:

brainly.com/question/14098827

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5 0
2 years ago
Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The Hinge Division produces
Luden [163]

Answer:

Minimum transfer price = $21

Explanation:

<em>Transfer price is the price at which goods are exchange between branches or divisions of the same group</em>

<em>Where  a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows</em>

Minimum transfer price = Variable cost

Note that the fixed of $12 per unit (i.e 33-21) is irrelevant for this purpose, whether or not Hinges produces, it will be incurred either way.

It is worthy of note that there is no opportunity cost associated with any transfer to the Doors division because Hinges is currently having excess capacity.

Therefore, any offering price equal to or above the variable cost of $21 would be acceptable and optimize the group profit.

Hence, the minimum transfer price = $21

3 0
3 years ago
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