If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to _____

Patton has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value

ruslelena [56]

Answer:

1. $2,000,000

2. Accounting Entry

Assets $17,000,000 (debit)

Goodwill $2,000,000 (debit)

Liabilities $13,000,000 (credit)

Investment in Kate $6,000,000 (credit)

Explanation:

The Acquisition of Kate must be done at the fair value of Assets and Liabilities at the acquisition date instead of book values.

Goodwill is the excess of the Purchases Price over the Net Identifiable assets acquired.

Calculation of Goodwill :

Purchase Price $6,000,000

Less Net Identifiable Assets

Assets at Fair Value $17,000,000

Less Liabilities at Fair Value ($13,000,000) ($4,000,000)

Goodwill $2,000,000

Accounting Entry

Assets $17,000,000 (debit)

Goodwill $2,000,000 (debit)

Liabilities $13,000,000 (credit)

Investment in Kate $6,000,000 (credit)

4 0

2 years ago

Joanne is a member of a group that is developing a questionnaire as a group project in her sociology class. The leader of her gr

Scrat [10]

Answer:

Expressive leadership

Explanation:

The group leader is exhibiting expressive leadership style. Expressive leadership style is one of the most effective techniques which help to engage employees in a healthy informative discussion. Effective leaders are also democratic leaders and that is why such are mostly successful in running a business and in leading employees. Group harmony and communication are some priorities of expressive leaders. Moreover, such leaders make decisions by collaborating with every member of the team. Joanne must listen to those suggestions and try to implement them in her questionnaire.

7 0

2 years ago

If real economic growth is 3%, the inflation rate is 5%, and the nominal interest rate is 7%, then the real rate of interest is:

Elanso [62]

Based on the information given the real rate of interest is:2%.

<h3>Real rate of interest</h3>

Using this formula

Real rate of interest=Nominal interest rate-Inflation rate-

Where:

Inflation rate=5%

Nominal interest rate=7%

Let plug in the formula

Real rate of interest=7%-5%

Real rate of interest=2%

Inconclusion the real rate of interest is:2%.

Learn more about real rate of interest here:brainly.com/question/25877453

3 0

1 year ago

Jeff jones earns $1,200 per week. he is married and claims four withholding allowances. the social security rate is 6.2% on $118

myrzilka [38]

Answer: Gross Pay: $1200 Less Health Ins: (42.50) Taxable Pay: 1157.50 SS Tax: 71.77 (1157.50 *.062) Medicare Tax: 16.78 (1157.50 *.0145) FIT: 91.79 Net Pay: 977.17 FIT calcualted as follows: Taxable less allowances (1157.50 less (71.15*4) = 872.9 (872.9 * .15)-39.15 = 91.79

4 0

3 years ago

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect co

kirill [66]

Answer:

overhead rate = 18 per hours

Explanation:

given data

indirect costs = $396,000

Department DLH Loans Processed Direct Costs

Consumer 14,000 700 $280,000

Commercial 8,000 300 $180000

to find out

overhead rate

solution

we get here overhead rate that is express as

overhead rate = $\frac{indirect\ cost}{total\ DLH}$ ...............1

put here value

overhead rate = $\frac{396000}{14000+8000}$

overhead rate = 18 per hours

4 0

3 years ago

If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.

If the economy is experiencing an inflationary gap, the Fed should conduct monetary policy to aggregate demand.