Answer:
Invisible Hand Concept
Explanation:
Based on the information provided within the question it can be said that in this scenario Marco's experience is an example of the Invisible Hand Concept. This concept describes the social benefits of an individual's actions. Such is Marco's experience in since he created the business in order to solve a problem, which he managed to accomplish and by doing so helped older adults with their problem and created job opportunities for various other individuals.
Answer:
C. $250000
Explanation:
Given:
Total assets = $600,000
Liabilities = $160,000
Stockholders’ equity = $540,000.
Fair value of the restaurant assets = $680,000
Alice Company pays = $770,000
Goodwill is when a company looking to acquire another company is willing to pay a price significantly higher than the fair market value of the company’s net assets.
Net Assets = Fair value of assets - Total Liabilities
= $680000 - $160,000
= $520,000
Amount of Goodwill = cash paid - net assets
= $770,000 - $520,000
= $250000
Answer: d. $45,000 should be debited to Land Improvements.
Explanation:
Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.
The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:
= 30,000 + 15,000
= $45,000
Answer:
The monthly deposit is calculated using PMT function :
rate = 1.2%/2 (converting annual rate into monthly rate)
nper = 12 * 5 (5 years of deposits with 12 monthly deposits each year)
pv = -3200 (Amount put into account now. This is entered with a negative sign because it is a cash outflow)
fv = 26865 (Required value of account after 5 years)
PMT is calculated to be $379.70.
The monthly deposit is $379.70.
