Company A acquired the net assets of Company B. To compute price for acquisition Company A made
Fantastic news! We've Found the answer you've been seeking!
Question:
Company A acquired the net assets of Company B. To compute price for acquisition Company A made the following assumption FV net assets 3900000 JD future earnings 11000 JD. ROA 6% discount rate 20%. Compute price for acquisition.
Expert Answer:
Answer rating: 100% (QA)
Hence Price for Acquisition 2785000 Computation of Goodwill Gain on Bargain purchase No... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The net assets of Ace Inc. excluding goodwill totaled P2,400,000 and earnings for the last 5 years totaled P2,670,000. Included in the latter figure are gain on sale of equipment P225,000, typhoon...
-
Corporation A purchased the net assets of Corporation B for $80,000. On the date of As purchase, Corporation B had no long-term investments in marketable securities and $10,000 (book and fair value)...
-
Brown Ltd acquired the net assets of Green Ltd on 1st January 2020. The operations of Green Ltd are conducted through three separate divisions. Brown Ltd has determined that these divisions are...
-
Describe, draw, the curve with the following parametric equations in the cylindrical co-ordinate space: r = 5, z = 2,0 = t
-
The data show the amounts (in thousands of dollars) of the contracts for soft drinks in local school districts. At α = 0.10 can it be concluded that there is a difference in the...
-
Which unit is larger? 1. 1 litre or 1 centilitre 2. 1 millilitre or 1 kilolitre 3. 1 cubic millimetre or 1 cubic centimetre 4. 1 cm3 or 1 m3 5. 1 square kilometre or 1 hectare 6. 1 mm2 or 1 dm2
-
Calculate NewWorlds price-earnings ratio, before and after the takeover described in Example 22.2.
-
After the death of Lennie Pope, his will was read. It contained the following provisions: $110,000 in cash goes to decedents brother, Ned Pope. Residence and other personal property go to his...
-
12.Indicate, by clicking on the relevant boxes, whether the following statements are true or false?
-
What insights from the discussion of the Morgan Stanley 2003 report on eBay apply to the 2013 report on Aetna by Jefferies? What insights from the discussion of the Morgan Stanley 2003 report on eBay...
-
Find the volume of the solid bounded by the surfaces x = 0, y = 0, z=3- 2y and z= 2x2 + 1. z=3-2y 2 z=2x +1 The volume is
-
Suppose you have $10,000 to invest. Which of the two rates would yield the larger amount in 2 years. 11% compounded quarterly or 1090% compounded continuously? Which of the two rates would yield the...
-
The O 4 A l complex circuit implements the Boolean function F = F = [ A . B . C . D ] ' F = [ ( A + B + C + D ) * E ] ' F = [ ( A + B + C ) * D ] ' F = [ A + B + C + D ] ' The 04Al complex circuit...
-
Synergetics tasked with putting together a presentation about the company's proposed community outreach initiatives. Farah, the most senior member of the team, has been with the company for several...
-
Tina, Noah, and Robert all have investments in non-registered accounts. Each of them has received $40,000 of investment income, but the type of investment income is different for each friend. They...
-
Discuss how private organizations differ from public organizations in terms of motivational tools. Recall that private organizations have the incentive of financial bonuses that are difficult for...
-
What is the function of the 'grid' command in MATLAB plots? a) To add a background color b) To display or hide grid lines c) To set the plot as a grid layout d) To create a 3D grid 10. What is the...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
An object traveling at a constant velocity vo experiences a constant acceleration in the same direction for a period of time t. Then an acceleration of equal magnitude is experienced in the opposite...
-
You are told that a person has walked 750 m. What can you safely say about the persons final position relative to the starting point?
-
If the displacement of an object is 300 m north, what can you say about the distance traveled by the object?
Study smarter with the SolutionInn App