QUESTION 2 When negative goodwill occurs in a business combination calculation, a The negative goodwill is considered an impairment b The value is allocated first to reduce proportionately (according to market value) non current assets, then to non monetary current assets, and any negative remainder is classified as a deferred credit c allocated first to reduce proportionately (according to market value) non current assets, and any negative remainder is classified as an extraordinary gain d allocated first to reduce proportionately (according to market value) non current, depreciable assets to zero, and any negative remainder is classified as a deferred credit QUESTION 4 Robin Corporation purchased 150,000 previously unissued shares of Nest Inc's $10 par value common stock directly from Nest for $3,400,000 Nest's stockholder's equity immediately before the investment by Robin consisted of $3,000,000 of capital stock and $2,600,000 in retained earnings What is the book value of Robin's investment in Nest a $1,500,000 b $1,680,000 c $2,800,000 d $3,000,000

The Answer is in the image, click to view ...

Question: QUESTION 2 When negative goodwill occurs in a business combination calculation, a. The negative goodwill is considered an impairment. b. The value is allocated first

QUESTION 2

When negative goodwill occurs in a business combination calculation,

	a.	The negative goodwill is considered an impairment.
	b.	The value is allocated first to reduce proportionately (according to market value) non-current assets, then to non-monetary current assets, and any negative remainder is classified as a deferred credit.
	c.	allocated first to reduce proportionately (according to market value) non-current assets, and any negative remainder is classified as an extraordinary gain.
	d.	allocated first to reduce proportionately (according to market value) non-current, depreciable assets to zero, and any negative remainder is classified as a deferred credit.

QUESTION 4

Robin Corporation purchased 150,000 previously unissued shares of Nest Inc's $10 par value common stock directly from Nest for $3,400,000. Nest's stockholder's equity immediately before the investment by Robin consisted of $3,000,000 of capital stock and $2,600,000 in retained earnings. What is the book value of Robin's investment in Nest?

	a.	$1,500,000
	b.	$1,680,000
	c.	$2,800,000
	d.	$3,000,000

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!

The relevant documents:- 1. Consolidated financial statement POSTMEDIA NETWORK CANADA CORP. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED AUGUST 31, 2022 AND 2021 Approved for issuance:...

Look at the notes to the Campbell Soup financials in your text or in the module in Canvas. What do the notes say about the inventory cost flow assumptions used? Why do you think this is important...

1)Identify the cash flow patterns for 2020 and 2019. What do these patterns tell us about Loblaw? 2)Calculate the average age percentage of Loblaws property and equipment for 2020 and 2019 and...

For this question you must use the excerpts from the financial Statements of Campbell Soup Company, found in Appendix 2. Look at Campbells Balance Sheet. Are you able to determine the specific kinds...

International Accounting: A User Perspective CHAPTER 4QUESTIONS International Accounting: A User Perspective TRUE/FALSE 1. With the GPLA model, the adjustment factor for non-monetary items is...

NEED ANSWER BEFORE 11:00 IF NOT LET ME KNOWTODAY OCTOBER FIRST, THEY ASK ME FOR MORE MONEY BUT DO NOT KNOW HOW TO ADD MORE Text 1 450 A business combination is accounted for properly as an...

having problems with advanced accounting can you help 1. Picasso Co. issued 10,000 shares of its $1 par common stock, valued at $400,000, to acquire shares of Bull Company in an all-stock...

I posted two annual reports one is Microsoft and other one is Game Stop can i plzz know what are the similarity and difference Dividends we paid cast dividends of $40.5 million, $17.4 milion and...

Here are all 30 multiple choice questions. I also attached the questions in file herewith. QUIZ ? Advanced Accounting 1. Which of the following situations best describes a business combination to be...

Hi, Please help me with responding to the discussion questions below because I'm having a hard time answering them myself. I have been up all night, and I'm unable to figure them out. I uploaded a...

During 2022, Maryjane, a single taxpayer, received the following gains and losses: LTCG LTCL STCG STCL a. O $10,000 3,000 2,000 7,000 How much is Maryjane's tax liability if she has taxable income of...

How should companies evaluate suppliers?

What is a variance and why is it necessary to calculate one for materials, labor, and overhead? Also, what's the impact of an unfavorable variance versus a favorable variance and what are some ideas...

A random sample of 43 biology students in a science program are selected for a study. Of those selected, only 27 passed the mid term exam. At the 5% significance level, is there sufficient evidence...

In what ways can confl ict enrich relationships?

How do listening and hearing diff er?

How does eff ective listening diff er across listening goals?