What is the fair value of the liability

Assignment Help Accounting Basics
Reference no: EM132122513

Question - Domingo Entity entered into a contract to exchange a liability. However, this particular liability does not have a quoted price in Domingo's principle market. Sabado Entity holds an asset similar to the liability to be exchanged at a price of $45,000. Domingo decided that their finance department could incorporate a complex valuation model using estimates that would generate a more accurate fair value of $60,000. What is the fair value of the liability? Explain.

Reference no: EM132122513

Questions Cloud

Discuss why you agree or disagree with the statement : Explain and discuss why you agree or disagree with the statement.
What is the fair value of the leased building : The appropriate interest rate to reflect the time value of money is 8%. What is the fair value of the leased building
What are the types of organization behaviour : what are the types of organization behaviour? show similarities and comparison. what are the components of organization culture?
Describe different networking methods : Describe different networking methods and the advantages and disadvantages of them?
What is the fair value of the liability : Domingo Entity entered into a contract to exchange a liability. What is the fair value of the liability? Explain
Discuss strategies to obtain feedback : Discuss strategies to obtain feedback from a customer and clients when working in sales
Communicate with biotech corporate headquarters : This communication plan will be a roadmap on how the new division will best be able to communicate with Biotech's corporate headquarters
What is the hourly rate of pay : An employee of a Board of Education is paid an annual salary in 22 bi-weekly payments of $1237.96 each. What is the hourly rate of pay
Global recognition of geographical indications : What historical factors have helped support the consortium's claims for the geographic specificity of Parmigiano-Reggiano and Parmesan?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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