Determine the dollar value of goodwill

Assignment Help Accounting Basics
Reference no: EM131622035

Question - Immediately following an acquisition, the Alpha Company's balance sheet included cash $50,000, investment in subsidiary $200,000, plant assets $475,000, and liabilities $150,000.  The wholly owned subsidiary (Bravo-Zulu Company) had cash $55,000, plant assets $145,000, and liabilities $70,000.  All balances are normal. There are no other assets or liabilities, and the given values for the subsidiary are also equal to their fair values. Use this information to determine the dollar value of Goodwill that will be recorded in Alpha Company's consolidated balance sheet?

Reference no: EM131622035

Questions Cloud

Assuming that market for the bonds is in equilibrium : What is the current market risk premium implied by following information about AT&T Company’s bonds, assuming that the market for the bonds is in equilibrium?
Examples of money laundering : Examples of money laundering and explain each example. How does the Honda use derivatives for funding, investing, and other price risks?
Determine the maturity value of the certificate : Use this information to determine the maturity value of the certificate on December 31, 2018? (Round your answer to the nearest whole dollar.)
Company is deemed more risky by investors in bond markets : Which company is deemed more risky by the investors in the bond markets?
Determine the dollar value of goodwill : Use this information to determine the dollar value of Goodwill that will be recorded in Alpha Company's consolidated balance sheet
What are the balances in alpha company : Using this information, what are the FY 2017 balances in Alpha Company's account balances for: Investment in Bravo-Zulu
Assuming that the market for the bond is in equilibrium : What is the interest rate of the following bond, assuming that the market for the bond is in equilibrium?
Analyze the value of a potential investment : You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.
How much is the cost saving to company : Company A desires a variable-rate loan but currently has a better deal from the fixed-rate market at a rate of 13%. How much is the cost saving to Company A?

Reviews

Write a Review

Accounting Basics Questions & Answers

  At the beginning of the current fiscal year the balance

at the beginning of the current fiscal year the balance sheet of cummings co. showed liabilities of 219000. during the

  How much overhead cost is fixed and how much is variable

TCO3 Patrick Ross, the president of Ross's Wild Game Company, has asked for information about the cost behavior of manufacturing overhead costs. Specifically, he wants to know how much overhead cost is fixed and how much is variable.

  Indicate whether each account would be reported

The following accounts appear in an adjusted trial balance of Resolve Consulting. Indicate whether each account would be reported in the

  To settle the debt doran agrees to accept from mann

mann inc. which owes doran co. 600000 in notes payable with accrued interest of 54000 is in financial difficulty. to

  Explain the effect that the sarbanes-oxley act of 2002 and

1. describe the elements of the generally accepted auditing standards gaas.2. describe how these standards apply to

  Beginning wip 75 for materials 45 for conversion

beginning wip 75 for materials 45 for conversion transferred-in completed ending wip 60 for materials 20 for conversion

  Hanson company is constructing a building construction

hanson company is constructing a building. construction began on february 1 and was completed on december 31.

  Explain the meaning of temporary and permanent differences

What is the difference between pretax financial income and taxable income? Explain the meaning of temporary and permanent differences. Give at least two unique examples of each (please do not repeat what other students have posted)

  Find out the equivalent units of production for materials

barker inc. uses the weighted-average method in its process costing system. the following data concern the operations

  What are some other criticisms of using roi

ACC 400- Although ROI can be a good measure of company's performance, there can be some drawbacks to using this measure to base management's performance. What are some other criticisms of using ROI? Do you agree or disagree?

  Determining the market interest rate

Youngblood Inc. plans to issue $500,000 face value bonds with a stated interest rate of 8%. They will mature in ten years. Interest will be paid semiannually. At the date of issuance, assume that the market rate is (a) 8%, (b) 6%, and (c) 10%.

  At the beginning of its 2010 calendar-year accounting

at the beginning of its 2010 calendar-year accounting period abc inc. had retained earning of 1500000. during 2010 abc

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd