Answer:
I could not find the exact details related to this question so here is a similar question to guide you.
Goodwill = Acquisition Price - Net book value (Investee)
= 75,000 - ( Assets - Liabilities)
= 75,000 - ( 90,000 - 40,000)
= $25,000
Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.
= 10,000 ( 1 - 40%)
= $6,000
Net Goodwill = 25,000 - 6,000
<h2>
= $19,000</h2>
Answer:
25 years
Explanation:
4% of 100 is $4, $4 times 25 is $100
Answer:
Sale of plant assets. If the company<u> sales an equipment it will receive cash </u>for it. We are not given with any information of this transaction not being in cash, so we should assume it was a sale in cash or cash equivalent.
Explanation:
<u>Conversion of bonds into common stock.</u> The bonds, which are outstanding and represent a promise to pay, are converted into common stock, this transaction doesn't involve cash.
<u>Issuance of common stock to purchase land. </u>The land is acquire in exchange of common stock, the company is not using cash. the owner of the land can later sold the stock to a third party but it won't affect the cash flow of the company.
<u>Issuance of debt to purchase equipment </u>Like singing a note to purchase a machine, no cash is involve.
Answer:
$66,000
Explanation:
The $60,000 paid as last month's rent will be reported as an asset, prepaid rent, and the deposit of $80,000 will be reported as an asset, deposits. The new walls and offices costing $360,000 will be capitalized as leasehold improvements and amortized over the 5-year term of the lease. Amortization will be $72,000 per year or $6,000 per month. As a result, Tell will report expenses in 20X0 of $60,000 in rent and $6,000 in amortization for a total of $66,000.
