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GrogVix [38]
3 years ago
11

Interstate 4 (i-4) and state road 408 are two major highways that affect traffic flows in orlando. motorists are not required to

pay a toll (user fee) to drive on interstate 4, whereas they are required to pay a toll (user fee) to drive on state road 408. if at a given time of day state road 408 is highly congested, then it could be considered to possess the properties of a:
Business
1 answer:
Alexus [3.1K]3 years ago
3 0
If at a given time of the day, the state road 408 is higly congested, then it could be considered to possess the properties of a COMMON PROPERTY GOOD.
There are four types of economic goods, these are: public goods, private goods, common property goods and club good.
Common properties goods are those goods which are characterised by rival consumption and non exclusion of non payers. Rival consumption implies that consumption by a user imposes limitations on what others can consume, but a user can not stop another user from enjoying the good. Common property goods are equally owned by everyone  and are not controlled by anyone in particular, thus these goods usually need government intervention.
You might be interested in
Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Compan
Rufina [12.5K]

Answer:

a. See the journal entries in the explanation below.

Retained Earnings is $175,000

Goodwill is $25,000

b. See the journal entries in the explanation below.

Retained Earnings is $175,000

Capital Reserve is $4,000

Explanation:

Note: There are mistakes the names of the companies in the requirements a anb b. These correctly restated before answering the question by as follows:

a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry

2. Record the excess value (differential reclassification entry)

b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry.

2. Record the excess value (differential) reclassification entry.

<u>The answers and explanation are therefore given as follows:</u>

a. Prepare the following consolidation entries required when Consideration is $291,000

1. Record the basic consolidation entry

<u>Accounts                                              Dr ($)              Cr ($)              </u>

Common Stock                                   91,000

Retained Earnings (w.1)                    175,000

Goodwill (w.2)                                    25,000  

     Investment in Scrub Company                           291,000

<u><em>(To record the elimination of investment and stockholder equity.)   </em></u>

2. Record the excess value (differential reclassification entry)

Note that $25,000 is transferred to Goodwill account in part 1 above.

The $25,000 is transferred to Goodwill because when the consideration is greater than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is the Goodwill.

When Net Consideration is more than the net asset value (Stockholder Equity), then the difference is to be transferred to Goodwill.

Workings:

w.1: Calculation of retained earning to be eliminated

Particulars                                                                        $

Retained Earnings Balance                                        160,000

Increase in land value                                                  21,000

Decrease in inventories values                              <u>     (6,000)  </u>

Fair Value retained earnings to be eliminated      <u>    175,000  </u>

w.2: Calculation of Goodwill to be recognized

Particulars                                                      $                         $

Consideration paid for acquisition                                     291,000

Assets of Scrub:

Asset book value                                     420,000

Increase in land value                                21,000

Decrease in inventories values         <u>       (6,000)  </u>

Assets                                                       435,000

Liabilities                                                <u>  (169,000)  </u>

Net asset value of Scrub                                                 <u> (266,000) </u>

Goodwill to be recognized                                            <u>      25,000  </u>

b. Prepare the following consolidation entries required when Consideration is $262,000

1. Record the basic consolidation entry

<u>Accounts                                              Dr ($)              Cr ($)              </u>

Common Stock                                   91,000

Retained Earnings (w.3)                    175,000

     Investment in Scrub Company                           262,000

     Capital reserve (w.4)                                                4,000

<u><em>(To record the elimination of investment and stockholder equity.)   </em></u>

2. Record the excess value (differential reclassification entry)

Note that $4,000 is transferred to Capital Reserve in part 1 above.

The $4,000 is transferred to Capital Rserve because when the consideration is less than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is Capital Reserve.

When Net Consideration is less than the net asset value (Stockholder Equity), then the difference is to be transferred to Capital reserve.

Workings:

w.3: Calculation of retained earning to be eliminated

Particulars                                                                         $

Retained Earnings Balance                                        160,000

Increase in land value                                                  21,000

Decrease in inventories values                            <u>      (6,000)  </u>

Fair Value retained earnings to be eliminated     <u>    175,000  </u>

w.4: Calculation of Goodwill to be recognized

Particulars                                                      $                         $

Consideration paid for acquisition                                     262,000

Assets of Scrub:

Asset book value                                     420,000

Increase in land value                                21,000

Decrease in inventories values          <u>       (6,000)  </u>

Assets                                                       435,000

Liabilities                                                <u>  (169,000)  </u>

Net asset value of Scrub                                                  <u>  (266,000) </u>

Capital reserve to be recognized                                 <u>       (4,000)  </u>

3 0
3 years ago
Interviews are designed to determine if the employer feels a candidate is a good fit for the job. What benefit does an interview
Helen [10]

Explanation:

The job interview is a form of selection used by companies to select candidates for a job more effectively, because through it, the recruiter will meet the candidate in person, ask questions about issues related to his resume and his professional experiences , as well as the opportunity to analyze the way you communicate, your interests and your personality.

The advantage of the interview for the job candidate is to demonstrate your good intentions when occupying the job through an ethical, cordial posture and to have the opportunity to talk about some professional experiences that may be of interest to the employer and the company. It is also an opportunity for the candidate to clarify doubts about the responsibilities of the position and any other doubts related to the company or job function.

4 0
3 years ago
After the issuance of its year 1 financial statements, Serenity Inc. discovered a computational error of $150,000 in the calcula
Vladimir79 [104]

Answer: C. $150,000 credit

Explanation:

In the financial statements for year 2, it should be noted that the year 1 retained earnings balance, should be adjusted by $150,000 credit.

The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.

Therefore, the correct option is C.

4 0
2 years ago
In custom reports, what must metrics and dimensions share in order to report accurately?.
romanna [79]

Answer: The Same Scope!

Explanation

3 0
2 years ago
Achieving a differentiation-based competitive advantage does NOT involve:a. incorporating product attributes and user features t
BARSIC [14]

Answer:

None of the above

Explanation:

As the differentiation strategy focuses on the gaining maximum customers even in highly competitive market, this is done by maximum customer service and includes all of the above.

Thus all the statements in the question are valid and are part of discrimination policy.

Whether it be the additional cost benefit to customers, the extra benefits of using the product, or the increase in satisfaction in customers with any-kind like, non economic or intangible.

5 0
3 years ago
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