Which statements regarding y goodwill on the date

Assignment Help Accounting Basics
Reference no: EM132691160

Problem 1: The X Company acquires the Y Company's common shares for cash. On the date of acquisition, Y had Goodwill of $100,000 on its books. Which of the following statements regarding Y's Goodwill on the date of acquisition is correct?

a. Y's goodwill is considered an identifiable asset and should therefore be included in Parent Company's Purchas Price Discrepancy calculation.

b. Y's goodwill is considered an identifiable asset and should therefore be excluded from the Parent Company's Purchase Price Discrepancy calculation.

c. Y's goodwill is not considered an identifiable asset and should therefore be excluded from Parent Company's Purchase Price Discrepancy calculation.

d. Y's goodwill is not considered an identifiable asset and should therefore be included in Parent Company's Purchase Price Discrepancy calculation.

Reference no: EM132691160

Questions Cloud

How would approach getting the ship back on course : You have just been hired by the L&S Division of a Multi International Company. How would you approach getting the ship back on course?
Provide the journal entries necessary to account : Provide the journal entries necessary to account for all the above transactions and events up to 1 July 2023, in accordance with AASB 116
Most common risk management process : Compute the three most common risk management process assurance audit formats.
Calculate the expected annual sick-leave expense : Dainty Ltd has an average weekly payroll of $200 000. Calculate the expected annual sick-leave expense for Dainty Ltd (on the basis of average salaries)
Which statements regarding y goodwill on the date : On the date of acquisition, Y had Goodwill of $100,000 on its books. Which statements regarding Y's Goodwill on the date of acquisition is correct?
What is amazon weighted average cost of capital : i) What is Amazon's weighted average cost of capital?
What is the essence of the theory of comparative advantage : What is the essence of the theory of comparative advantage? Discuss and provide examples with references
What will be times-burden-covered ratio : If the company raises the funding with equity, what will be its times-interested earned ratio? What will be its times-burden-covered ratio?
Explain how the eurodollar market developed : What is a Eurodollar? Explain how the Eurodollar market developed.

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