On 1117 Swift Inc is going to buy the net assets of Kanye Inc Swift is willing to pay fair market value of the net assets plus excess earnings The excess earnings will be capitalized at prime plus 1 as the discount rate Assume goodwill will last for 19 years from the purchase date On 1117 prime for Swift was 724 and for Kanye was 846 In preparing your solution consider the following additional information 1 Swift normally uses straight line 36 year life depreciation for buildings and a 65 salvag

Answer rating: 100% (QA)

Solution Fair value of net assets taken over by inve... View the full answer