Question: PLEASE EXPLAIN THE ANSWER STEP BY STEP. THANK U. Dorel Company is being purchased and has the following balance sheet as of the purchase date:

PLEASE EXPLAIN THE ANSWER STEP BY STEP. THANK U.

PLEASE EXPLAIN THE ANSWER STEP BY STEP. THANK U. Dorel Company is

Dorel Company is being purchased and has the following balance sheet as of the purchase date: Current assets Fixed assets Total $200,000 180,000 $380.000 Liabilities Equity Total $ 90,000 290,000 $380,000 Amanda Co. paid for 45% of Dorel's net assets is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. The amount of goodwill or gain to be recorded in the purchase is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

PLEASE EXPLAIN THE ANSWER STEP BY STEP. THANK U. Barbara Co. paid $110,000 for the net assets of Coronel Corp. At the time of the acquisition the following information was available related to...

Please explain the answer step by step. Thank you! Income Statement & Balance Sheet Beta Polaris Inc. Year 5 1,899,617 2,019,779 1,449,0761,554,872 195,148 37,629 232,130 10,116 222,014 60,418...

Based on the facts in the case, is Aliexpess (in 2018) using a transnational approach to its international strategy in Russia? Fully justify your answer using facts in the case. CASE 17 Aliexpress:...

la reporting unit) of On July 31, 2020, Pharoah Company paid $2,900,000 to acquire all of the common stock of Conchita Incorporated, which became a Pharoah. Conchita reported the following balance...

Please answer 1. Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; and interest...

I am looking for help with this Advanced Accounting assignment. I have some of it complete but am stuck now. I have attached the instructions along with the template that must be completed. Could you...

Use the following information for Problems 5-4 and 5-5: On January 1, 2014, Pontiac Company acquired an 80% interest in the common stock of Stark Company for $400,000. Stark had the following balance...

Microsoft Word - Capital_Adequacy_Project Questions: Calculate the banks: a) Leverage ratio b) Risk-adjusted asset value c) CET1, Tier I and Total capital ratios? d) What capital adequacy category...

I have attached both he question and the excel file that is to be filled out. I have competed a majority of it but need help with the remaining areas. Thanks! On January 1, 2014, Pontiac Company...

please answer only number 2 Payday and Sunday had the following trial balances on December 31, 2020: Payday 124,000 6,000 400,000 (130,000) 60,000 272,000 49,090 Sunday 85,000 30,000 200,000 (40,000)...

(a) Aluminum foil used for storing food weighs about 0.3 g per square inch. How many atoms of aluminum are contained in one square inch of foil? (b) Using the densities and atomic weights given in...

Determine the smallest force F that must be applied along the rope in order to cause the curved rod, which has radius r, to fail at the support C. This requires a moment to be developed at C of...

The passwd file specifies each user's default shell. On your system, this would be be / bin / bash for a regular user. Name one other shell that appears in the passwd file on your instance.

Which option best meets each stakeholder's ethical desires? The Shareholders 1 . All members of the company understand and honor the need for some information to be confidential, even though other...

2. What do you think of how Hautelook handled its attendance problem? Was this an appraisal or a discipline problem? What difference would it make in how you handle the problem?

5. How does the California Health Foundation handle employees who may be candidates for future promotion?

2. What do you think of the idea of getting anonymous thirdparty feedback on the employee? Why?