Discuss two motivations that managers may have for attempting to influence or bias reported financial results? B)
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Question:
Discuss two motivations that managers may have for attempting to influence or bias reported financial results?
B) Suggest one (1) way this behaviour can be minimised ?
c) Assume that a drilling machine is acquired for the following consideration:
- cash: $200,000
- shares: 20,000 shares with a market value of $4.50 each
- Machine: Cost $100,000, accumulated depreciation, $75,000, fair value $37,000
The buying company also agrees to assume the liability of the selling company's accounts payable of $25 000 as part of the drilling machine acquisition.
Required: Calculate the acquisition cost of the drilling machine
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
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