Question regarding contingent payment

Assignment Help Accounting Basics
Reference no: EM13259333

The founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings:

a. the acquirer typically recognizes the payment as goodwill when the ccontingency is resolved and payment is given.

b. the acquirer typically recognizes the payment as goodwill when the contingency is resolved.

c. the acquirer typicallY includes the expected payments based on future earnings as goodwill at acquisition.

d. the acquirer typically amortizes contingencies over the applicable award period.

Reference no: EM13259333

Questions Cloud

What is the cost of transportation : North Carolina Terrycloth Company produces and stores towels in warehouses located in four cities. Ignoring the total shortage cost what is the cost of transportation?
Find the magnification of the microscope : A microscope uses an eyepiece with a focal length of 1.65 cm . Using a normal eye with a final image at infinity, What is the magnification of the microscope
What is the current market price : A $1,000 par value bond matures in 6 years, pays interest semi-annually, has a coupon rate of 5.2 and has a yield-to-maturity of 4.8 percent. What is the current market price? Round your answer to the nearest cent.
Determine the amount of net income for november : Determine the amount of net income for november, assuming that the owner made no additional investment or withdrawals during the month.
Question regarding contingent payment : The founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings:
The policy to be non-discriminatory : The National Association of State Tire Investigators, Engineers and Sellers (NASTIES) discovers certain evidence that suggests the federal government has been using its taxing powers to benefit wheel manufacturers.
What is the dollar amount of each semiannual coupon payment : A bond has a par value of $1000 and currently sells for $987. The bond's coupon rate is 7.9% and coupon payments are made semiannually. What is the dollar amount of each semiannual coupon payment? Round to the nearest dollar.
Find the input impedance of the transmission line : A 1(lambda) wavelength long line has parameter R=0.2 Ohm/m, G=0.002 mho/m, L=15 muH/m and C=2.31pF/m. The line is operated at a frequency f=2.5 GHz. It is terminated with a load impedance of 100 Ohms.
Distribution to the preferred stockholders : If $380,000 is to bedistributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Noncontrolling interest in the subsidiary income

Rojas Co. owned 7,000 shares (70%) of the outstanding 10%, $100 par preferred stock and 60% of the outstanding common stock of Brett Co. When Brett reported net income of $780,000, what was the noncontrolling interest in the subsidiary's income?

  What is the additional minimum liability for the year if any

Your company has a pension plan. At the end of the year your company reports an ABO of $250,000, PBO of $300,000 and Plan Assets of $230,000 for the year ended December 31, 2011.

  Analyze statements about accounting and recording process

Analyze statements about accounting and the recording process. Josh Cephus has prepared the following list of statements about accounts.

  Show the computation of expenses on the accrual basis

Expenses paid during 2008 were $80,000. Expenses paid in advance were $4,000 as at December 31, 2007, and the balance of expenses paid in advance was $8,000 as at December 31, 2008.

  Prepare journal entry for autumn company

Prepare the journal entry to record Autumn Company's issuance of 63,000 share of no-par value common stock assuming the shares;

  Allowance for doubtful accounts problem

Which of the following is most likely to be used in determining a proper amount to be included in the allowance for doubtful accounts?

  Why did the ethical dilemma arise

What will be the implications of the decision of the manager to lay off the 3 experienced sales executives?

  Transportation costs incurred by a manufacturing company

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

  Accumulated straight-line depreciation and book value

An asset purchased by A Corporation for $15,000 ON 01/01/1997 also incurred freight charges of $200 and installation cost of $1,000.The asset had a life expectancy of eight years and a salvage value of $2,800.

  Explain each step of the accounting cycle

Explain each step of the accounting cycle. Describe at least one transaction that would occur at the company you selected in each of these steps.

  Shares which are held in treasury

On december 15, 2010 pascal declared a cash dividend of $2.00 per share to stockholders of recordon december31. The dividend is payyable on january 15 2011 pascal has issued 1,000,000 shares of common stock, of which 50,000 shares are held in trea..

  What are total current assets

The following accounts were included on Megan's Style Consultants adjusted trial balance at December 31, 2010: What are total current assets?

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