When the implied book value exceeds the book values

Assignment Help Financial Accounting

Reference no: EM131214302

When the implied book value exceeds the book values of identifiable net assets, the difference is accounted for as

a - goodwill

b - excess of implied over fair value

c - a deffered credit

d - difference between implied and book value.

Reference no: EM131214302

Questions Cloud

Prepare a bond amortization schedule : On January 1, 2013, Hi and Lois Company purchased 12% bonds having a maturity value of $343,000, for $369,004.48. The bonds provide the bondholders with a 10.00% yield. The bonds are classified in the held-to-maturity category. Prepare the journal en..

Prepare the journal entries to record the interest received : On January 1, 2013, Hi and Lois Company purchased 13% bonds, having a maturity value of $547,500, for $609,763.18. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2013, and mature January 1, 2018, with interest receivabl..

Calculate the amount of intercompany sales : Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above cost (gross profit). During 2011 and 2012, such sales amounted to $400,000 and $500,000, respectively. At the end of each year, Sheraton ..

Difference between the implied value and the book value : The difference between the implied value and the book value of the company is calculated to be $200,000. Per review of the financial information provided by the company, the difference relates to tangibles and intangibles. Tangibles – Inventory and P..

When the implied book value exceeds the book values : When the implied book value exceeds the book values of identifiable net assets, the difference is accounted for as

Entry to eliminate the inter company sale of land : P Company owns 80% of the outstanding stock of S Company. On January 1, 2011, S Company sold land to P Company for $400,000. S had originally purchased the land on June 30, 2007, for $150,000. Prepare the w/p entry to eliminate the intercompany sale ..

Affects managements decisions on product pricing : In the long run, a company must price its product to cover its costs and earn a reasonable profit. But to price its product appropriately, it must have a good understanding of market forces at work. Please explain what this means and how it affects m..

Determine the average rate of return on the equipment : Master Fab Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $109,000 with a $9,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $35,9..

Regarding deductions and expenses he may be able to claim : An owner of an automobile body shop comes into your office for tax advice. He has been thinking about updating his antiquated computer system so he purchased a consumer handbook then he flew to San Francisco to visit the Apple Store to shop for compu..

User Account

All Pages