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bearhunter [10]
2 years ago
8

Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $12,000,000 in cash. The book values and f

air values of Premium Meats' assets and liabilities were: Book Value Fair Value Accounts Receivable $ 1,800,000 $ 1,600,000 Equipment 8,500,000 9,900,000 Patents 300,000 1,700,000 Notes Payable (2,700,000 ) (2,700,000 ) Net assets $ 7,900,000 $ 10,500,000
Required:

1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 1 decimal place. (i.e., $5,500,000 should be entered as 5.5).)

2. Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Business
1 answer:
UNO [17]2 years ago
8 0

Answer:

goodwill                                                          1,500,000 debit

increasein FV equipment - Premium meat 1,400,000 debit

increase in FV Patents  - Premium meat     1,400,000 debit

Investment Premium Meats                         7,900,000 debit

cash                                                                 12,000,000 credit

decrease in fair value A/R -Premium Meat       200,000 credit

Explanation:

cost:                                    12,000,000

fair value of the company: 10,500,000

                 goodwill               1,500,000

the entry will recognize the goodwill and the increase or decrease in fair value to match the price of acquisition

the investment account will be valued at book value as is expected that the fair value difference will disappear overtime due to depreciation, amortization and other factors.

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Shaniqua s restaurant utilizes a contribution margin pricing system. She would like the selling price of a new menu item she is
Setler79 [48]

Answer:

Her kitchen Staff can spend up to $3.00 on product cost.

Explanation:

Selling price= $10.00

Margin= $4.00

Labor costs = $10.00*30% = $3.00

Selling Price = Contribition margin + Labor costs + Product Cost.

Isolating Product cost from the equation:

Product cost = Selling price - (Contribution margin + Labor costs)

Product cost = $ 10.00 - ($4.00 + $3.00)

Product cost = $ 10.00 - $7.00

Product cost = $ 3.00

The max. amount that kitchen staff can spend on product cost is: $ 3.00

7 0
2 years ago
Jamie is writing an investigative report with footnotes. What is the standard format for numbering the footnotes?
mars1129 [50]
The believe that the best answer among the choices provided by the question is D. Full-size numbers followed by a period.
Hope my answer would be a great help for you.    If you have more questions feel free to ask here at Brainly.
3 0
2 years ago
Read 2 more answers
This table shows the number of cookies several bakeries sell each day. Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 T
Serggg [28]

Answer: d. Uncle John's

Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.

When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.

In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)









6 0
2 years ago
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Carmen is a member of a student taskforce that was asked to recommend solutions to the university's budget problem. when she not
9966 [12]

Answer: democratic leadership

Carmen stated a possible solution that was increasing tuition fee and then Carmen said that it should be considered. This means that she did not impose it that that is the only solution and that has to be done in any way, if she did then it would’ve been autocratic leadership.

Carmen left some room for discussion and this means it is a democratic approach in leadership.  


8 0
2 years ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
vodka [1.7K]

Available Options are:

A. Investors' allowable investment depends on the accredited or non-accredited status.

B. Investors may invest a combined $50 million within a 12-month period.

C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

Explanation:

The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

1. $2000

2. Or the lesser of (If the net worth of Wendy is less than $100,000)

  • 5% of its total income for the year
  • Net worth

There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

This means the non-accredited investor can not invest more than $1 million.

3 0
2 years ago
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