Answer:
The answer is A.
Explanation:
Net assets of the acquired company are revalued to their fair values and any excess of consideration transferred over fair value of net assets acquired is allocated to goodwill is correct.
This is also the calculation of goodwill. Goodwill is calculated by subtracting fair value of net identifiable net asset o the company that is about to be acquired from its purchase price. If purchase price is higher than net assets of the acquired, then it is a positive goodwill but if the purchase price is lesser than the net assets of the acquired, it is a negative goodwill.
Do I have to say true or false because this is true
Answer:
Highest and best use
Explanation:
The highest and best use principle explains the probable as well as reasonable and legal use of lands that are vacant as well as improved property. This property or land must be financially feasible and be supported appropriately so that the result gives highest value.
Answer: To increase sale by 10%, the seller must lower the price of the good by 12.5%.
Explanation: Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price. Since, demand and price for a normal good are negatively related to each other, price elasticity is also negative. It can be calculated using,
Therefore, to increase sale by 10%, the seller must lower the price of the good by 12.5%.
Answer:
$389,100
Explanation:
Calculation to determine what the correct balance for ending inventory on December 31 is:
Using this formula
Ending inventory on December 31=Ending inventory balance-Office supplies
Let plug in the formula
Ending inventory on December 31=$414,500- $25,400
Ending inventory on December 31=$389,100
Therefore the correct balance for ending inventory on December 31 is:$389,100
