Answer:
Explanation:
Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.
1.
Goodwill calculation
Purchase price - $2,500,000
Fair value - $1,800,000
Goodwill - $700,000
2.
No
Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.
3
No
Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit
Healthcare worker's main goals are to treat patient illnesses, but they cannot ignore social and cultural contexts. To provide the best care, it is vital that healthcare workers understand and respect how different cultures and religions handle grief and death. For example, it may be important to have a Rabbi or Priest who can pray with the patient or family if desired.
Answer:
Spot USD/GBP rate = 1.5711
(a) 1 year USD/GBP forward rate:
= [Spot rate × (1 + Domestic currency interest rate)] ÷ (1 + foreign currency interest rate)
= [1.5711 × (1+0.19%)] ÷ (1 + 0.39%)
= 1.56797, which means the USD will be at a forward premium
b) The observed 1 year forward rate is 1.60 which differs from the ideal forward rate.
This means an arbitrage opportunity exists here.
c) I would sell GBP forward for 1 year @ 1.60.
This means that I will receive USD 1.60 for every 1 GBP I sell instead of 1.56797 that is the ideal deal.
This is how I would take advantage of the arbitrage opportunity.
Answer:
The bonds sell for $342,125. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $365,750. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024? 3. What is the carrying (book) value
Explanation:
The bonds sell for $342,125. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $365,750. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024? 3. What is the carrying (book) value
Answer:
Play miniature golf instead of renting the movie.
Explanation: Marginal utility is the added satisfaction derived from spending an extra unit of money.
Now we can see that the consumer values time at $12 per hour, and they'll spend a total of $24 on watching the DVD because this will take 2 hours, the consumer will also spend just $12 on miniature golf because this takes just one hour.
Now factoring the costs of the DVD and the miniature golf into the equation, we have:
Total cost of renting and watching the DVD:
$4 + $24 = $28
Total cost of playing miniature golf:
$13 + $12 = $25
We can see that the consumer will spend less in playing miniature, while getting the same marginal utility with the other option.
