Answer:
c. $33,000
Explanation:
The computation of the total amount of goodwill recognized is shown below:
Goodwill = Consideration paid + Fair value of non controlling interests - Fair value of net identifiable assets
where,
Fair value of net identifiable assets = Book value of acquired company - Overvalued plant assets + Unreported identifiable intangible assets
= $25,000 - $6,000 + $10,000
= $29,000
So, the goodwill amount is
= $40,000 + $22,000 - $29,000
= $33,000
Answer:
E. centralized authority.
Explanation:
Centralized authority is a type of structure in which organizational management structure where most of the major decision-making power and authority rests in the hands of a concentrated group of leaders.
Answer:
The amount of the change in the earnings per share as a result of this change in the capital structure will be $0.16
Explanation:
all equity equity and debt
expected EBIT $600 $600
interest (-) ($192)
profit before tax $600 $408
tax (-) (-)
earnings to equity share holders $600 $408
number of equity sahes 500 300
earnings per share $1.20 $1.36
change in the earnings per share = $1.36 - $1.20
= $0.16
Therefore, The amount of the change in the earnings per share as a result of this change in the capital structure will be $0.16
Answer: 90 days and 4.06 times
Explanation:
Short term operating cycle = Average production process time + Days finished goods kept on hand + Days Accounts receivable outstanding]
= 40 + 15 + 35
= 90 days
Assuming a 365 day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
Answer: are benefits that are given up when selecting one alternative over another.
Explanation: When faced with the decision to make a choice between two probable options or the need to give up a certain amount of a product in other to increase production of another, the benefit or choice forgone by opting to go for an alternative is called opportunity cost. Put simply, the cost incurred or loss associated with giving up a certain investment for another.
Opportunity cost can be computed mathematically using the relation:
Opportunity cost = (Return on best forgone option - return on chosen alternative).
Opportunity cost is often considered in other to guide and weigh investment options.
