Basics of initial value method in accounting

Reference no: EM13154851

One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this decision?

Reference no: EM13154851

Questions Cloud

Total cost recovery deduction be on the properties purchased : In May 2013, Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $140,000. Preston's income is $100,000. If Preston wishes to maximize his total 2013 cost recovery deduction,

In performing a chi-square test : In performing a chi-square test of independence, as the difference between the respective observed and expected frequencies decrease, the probability of concluding that the row variable is independent of the column variable increases.

Problem related to accounts in ledger : The Boa Co. has the following accounts in its ledger: Cash, Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Capital Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscella..

Determine the bonds issue price : The bonds have a $20,000 par value, an annual contract rate of 10%, and mature in 10 years. Required For each of the following three separate situations, (a) determine the bonds' issue price on January

Basics of initial value method in accounting : One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this..

Determine the after-tax rate of return on this investment : Determine the after-tax rate of return on this investment. Uncle Elmo thinks it should be at least 8%. If Uncle Elmo could sell the generator for $7000 at the end of the fifth year.

Recognition of past accomplishments in field of education : \Ms. Clara Crayola, a teacher, received a cash award of $5,000 from the Chamber of Commerce in recognition of her past accomplishments in the field of education.

What will be the long-run impact of the electronic payments : What can the central bank do, if anything, to counteract the short-run changes in output and prices? If the central bank does not take any policy actions, what will be the long-run impact of the electronic payments system on prices and output?

Calculate the molar mass of the protein : 3.24 x 10-3 g of a protein was dissolved in water (total vol. of 5.00 mL). Given the osmotic pressure of the solution was 1.50 x 10-3 atm and the temperature is 298.0K, calculate the molar mass of the protein.

User Account

All Pages