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3241004551 [841]
2 years ago
7

Planter Corporation used debentures with a par value of $566,000 to acquire 100 percent of Sorden Company's net assets on Januar

y 1, 20X2. On that date, the fair value of the bonds issued by Planter was $550,000. The following balance sheet data were reported by Sorden:
Balance Sheet Item Historical Cost Fair Value
Assets
Cash & Receivables $59, 000 $53, 000
Inventoy 101, 000 203, 000
Plant & Equipment 413,000 310,000
Less: Accunulat ed Depreciation (168,000)
Goodwill 13,000
Total Assets $480, 000 $675, 000
Liabilities and Equities
Accounts Payable $47,000 $47,000
Common Stock 89,000
Additional Paid-In Capital 60, 000
Retained Eamings 284, 000
Total Liabilities& Equities $ 480,000
Required:
1. Determine the amount Planter Corporation would record as a gain on bargain purchase and prepare the journal entry Planter would record at the time of the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
loris [4]2 years ago
4 0

Answer:

$78,000

Explanation:

The journal entry is shown below:

Cash & Receivables A/c Dr $53,000

Inventory A/c Dr $203,000

Land A/c Dr $109,000

Plant & Equipment A/c Dr $310,000

Discount on Bonds payable A/c Dr $16,000 ($566,000 - $550,000)

      To Account payable $47,000

      To Bond payable $566,000

      To gain on purchase $78,000

(Being the exchange is recorded and the balancing figure is credited to gain on purchase account)

The computation of gain on purchase account would be

= Fair value of assets - fair value of account payable -  fair value of the bonds issued by Planter

= $675,000 - $47,000 - $550,000

= $78,000

Note: The land historical cost and fair value is $62,000 and $109,000 respectively

This information is not given in the question  

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Apple Inc. reported revenues of 234 billion USD and net income of 53 billion USD in 2015. These figures represent a stunning ann
dimaraw [331]

Answer: Historical comparison

Explanation:

Historical comparisons in organizations is when two or more events or cases are compared in order to discover a trend and evaluate the performance of an organization.

Apple Inc. had revenues of 234 billion USD coupled with a net income of $53 billion in 2015 and the figures represent an annual growth in revenue and the net income for 2014 indicated that an historical comparison has been done.

3 0
2 years ago
Read 2 more answers
Current assets and current liabilities for Brayden Company are as follows: 20Y9 20Y8 Current assets $498,600 $532,400 Current li
GuDViN [60]

Answer:

Working Capital -2019  =$229300

Working Capital -2018 = $230900

Explanation:

Working capital is the operating capital of the business that is used in the day to day running or the business and is a metric for the liquidity of the business. It is necessary for the operations of the business and is calculated as the difference between the current assets and the current liabilities.

Working Capital = Current Assets - Current Liabilities

Working Capital -2019 = 498600 - 269300  =$229300

Working Capital -2018 = 532400 - 301500  = $230900

4 0
2 years ago
On January 1, 2018, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000 when the net
klasskru [66]

Answer:  Investment income = Earning during 2018 × outstanding common shares

= $80,000 × 35%

Dividend declaration  = Dividend × outstanding common shares

= $40,000 × 35%

<em>Ramsey’s share of Vapor’s income for 2018 =  Investment income - Dividend declaration</em>

<em>= $28,000 - $14,000</em>

<em>= $14,000</em>

8 0
2 years ago
You are a newly hired operations manager for Hospital XYZ. You are required to:
Sergeu [11.5K]

Answer:

Follows are the solution to this question:

Explanation:

follows are the tasks, which is not in the priority order and at hand at Hospital XYZ:

HR domain: share the latest recruitment procedures throughout the emergency department of public health.

Operations: nurse staffing methods for function or treatment.

Funding: Review financial requests for both the purchase of new protections on wax surfaces by protection from the environment.

IT: IT reviews complaints regarding a possible breach of information.

IT: Study application in the physician's office for the implementation of new technology.

If valuing such activities, it should remember, that this patient (client) becomes impacted mainly. The clinicians or staff involved in Tasks 1 & 2, because Task 2, the very first priority must be considered, and also some standards must be developed, by each nurse, with remote care issues.

Information from its daily client is provided to control the staff, and a specific training program is intended for both the newly employed and negative feedback staff.

Respondents-Patients, Professions

Task 1, which directly affects the daily quality of service in a hospital, should be the secondary priority, with such a smaller shortage of hospitals due to customer dissatisfaction.

Members – Patients, medical personnel, permanent employees, doctors.

Task 4 When information violation is alleged, the third priority should to the loss of important patient data to certain other entities that may use for financial gains.

Participants – IT department, patients.

Task 3 will help its hospital cleaner if funds are required to purchase new buffers. Especially in comparison with all the above 3 tasks, it was taken as the fourth priority.

It was important, and that does not affect mostly the client nor would it impact the level of service as large as the three tasks above.

Advisor position-representatives of finance, environment protection, clean folk (sweepers). advisor position

Task 5 Its latest radiology software review application is now to be approved as the last. It indicates why old software is already in place since it is a new program. Consequently, nothing's ever going to stoop or the task in other projects is no slowdowns. It can be achieved as the last goal.

Investors involved-officials of the IT agency, diagnostic agents.

The process improvement throughout the solution of the problems in the hospitals by providing them the necessary importance to identify the priorities of different tasks.

6 0
2 years ago
. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i
Iteru [2.4K]

Answer:

PED = 0.67 inelastic demand

you should not lower the price of the book

Explanation:

the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} /  {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(50 - 40) / [(50 + 40) / 2]} /  {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] /  [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

the PED = 0.67 which means that the demand is inelastic

if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.

7 0
2 years ago
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