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 <u> 16000</u>
NET ASSETS (A) <u>780000</u>
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Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
<u />
b)
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
c)
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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Answer:
Number of car washed is 92
So option (a) is correct answer
Explanation:
It is given that 4 workers can wash 80 cars per day
Means initially 80 cars are washed per day
And it is given that rate of car wash is $5 per car
Now price of workers is $60 per day
As per car wash is $5
So number of extra car washed 
So total number of car washed = 80 + 12 = 92 cars per day
So option (a) is correct answer
Answer:
Option (a) is correct.
Explanation:
Pretax income = Contribution - Fixed cost
Contribution = Pretax income + Fixed cost
= $1,824,000 + $1,444,000
= $3,268,000
Sales - Variable Cost = Contribution
Variable Cost = Sales - Contribution
= (380,000 electric screwdrivers × $20.40 each) - $3,268,000
= $7,752,000 - $3,268,000
= $4,484,000
A risk premium is a measure calculated to reflect the riskiness of future profits. is The metric denotes the difference between the expected return on a market portfolio and the risk-free rate. The value of a firm is larger the lower is the risk premium used to compute the firm's value.
Answer: a. True
Explanation: A parallel test invovles bringing the recovery site to a state of operational readiness, but maintaining operations at the primary site
