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1 year ago

On January 1, 2020, the balance sheet of Naperville Company (a sole proprietorship) was as follows.

Business

1 answer:

guapka [62]1 year ago

8 0

Answer:

Explanation:

From the information povided:

(a) To compute the amount of goodwill paid by Chicago Corporation

Particulars Amount ($)

Accounts Receivable 100000

Inventory 170000

Plant & Equipment 400000

Land 90000

Customer List 4000

Trade Names 16000

NET ASSETS (A) 780000

Current liabilities 76000

Non-current liabilities 160000

NET LIABILITIES (B) 236000

∴

PURCHASE CONSIDERATION (A -B) 544000

Less: Cash Paid 580000

GODWILL 36000

In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.

Account Name Dr. Cr.

Accounts Receivable A/C 100000

Inventory A/C 170000

Plant Equipment A/C 400000

Land A/C 90000

Customer List A/C 4000

Trade Names A/C 16000

Goodwill A/C 36000

Current liabilities A/C 76000

Non-Current Liabilities A/C 160000

Cash A/C 580000

The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.

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Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash f

Sergio039 [100]

Answer:

$14 mil.

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-30 million

Cash flow in year 1 = $13,000,000

Cash flow in year 2 = $23,000,000

Cash flow in year 3 = 29,000,000

I = 20%

NPV = $13,587,630

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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2 years ago

Which of the following is the most accurate statement regarding the federal budget?

hoa [83]

The Federal Reserve System controls the monetary policy in the United States. They influence short-term interest rates and also determine the size of the money supply. The Federal budget is very hard to balance and has been a concern and is difficult to achieve. The President sends the budget to Congress who must approve it.

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1 year ago

Which of the following is not associated with firms following the global standardization strategy? A. Low pressures for local re

zvonat [6]

Answer:

The correct option is D. Customize product offering and marketing strategy to local conditions

Explanation:

Global standardization strategy refers to the ability to use a particular standard of marketing internationally. In other words, it's the ability for an organization to use the same marketing strategy from one country to another country, and across various cultures.

What this means is that an organisation using the global standardization strategy will treat the world as largely one market and one source of supply with little local variation.

Therefore, the firms following the global standardization strategy will not Customize product offering and marketing strategy to local conditions .

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2 years ago

Read 2 more answers

Ricardo borrowed $5,000 from his friend, Lorenzo. Ricardo signed a handwritten note stating, "I promise to pay $5,000 to Lorenzo

Andreyy89

Answer: Promissory note

Explanation:

Promissory note is considered to be an financial instrument that consist of the promise made by a person through a written document stating to pay a certain sum of money to another party as mentioned on the specific date or time.

Promissory note usually contains the details of indebtedness name , date, interest amount, principle amount, place of issuance and signatures of the parties involved. This instrument basically gives the information of how the party owes money to another party. this note is legally enforceable by law.

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1 year ago

Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will recei

makvit [3.9K]

Answer:

a. What amount of taxable dividend income, if any, does Madison recognize in 2009?

Madison doesn't have to recognize any income because she is not getting any. Only after Madison decides to sell his stocks will he recognize any taxable income if she makes a gain.

b. What is Madison's income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable?

Madison current basis is $100 per stock, and after the stock dividend it will be $100 / 1.1 = $90.91 per stock

c. How would you answer questions a and b if Madison was offered the choice between 1 share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger?

then the cash dividend would be $10 per stock, which results in $10 x 1,000 = $10,000 taxable income. Her basis in the stock will remain not change.

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2 years ago