Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Got Em Co. had operating income of $64,300 and net assets with a fair market value of $184,000. Takeover Co. pays $322,000 for Got Em Co.'s net assets and business activities.
a. How much goodwill will result from this transaction?
b. Calculate the ROI for Got Em Co. based on its present operating income and the fair market value of its net assets. (Round your answer to 2 decimal places.)
c. Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $64,300. (Round your answer to 2 decimal places.)
d. Takeover Co. is willing to pay $138,000 more than fair market value for the net assets acquired from Got Em Co. as it represents goodwill and the expected superior earnings in future years.
Please describe how to prepare necessary journal entries to record the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts.
Prepare an appropriate journal entry to indicate the impact of the transactions on the state's fund financial statements for the year ending December 31, 2011.
Income statement, Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40 percent.
Prepare the 2009 journal entries for all of the following transactions and adjustments. Show full computations. You can ignore dates if not given. Round all amounts to nearest dollar.
A company purchased and installed a machine on January 1, 2004 at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The machine was disposed of on July 1, 2007.
In the current year, David and Debbie Wayland, both successful physicians, made cash investment for a limited partnership interest in a California berry farm. In addition to the cash obtained from the investors-Identify the tax issues facing the W..
aesar and Junius orally agreed to become partners in a food testing business. one-half of $80,000, the reasonable value of Caesar’s services during the operation of the partnership. Who will prevail and why?
In which of the markets would you recommend that the company focus its advertising campaign? Show computations to support your answer.
Demostrate the entry in the Investment Trust Fund to summarize the collection of interest for six-month period.
Compute the predetermined overhead rate. Compute the overhead applied. Find out the amount of overhead that is over or under applied.
What is the expected return of this asset? What is Esperanza's expected utility? What is her certainty equivalent? Suppose that Esperanza can purchase insurance that guarantees her a return of $4900 regardless of the return on the asset.
How has the 2007-09 Global Financial Crisis affected the procedures of global economic governance?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd