The fair value of the plant and equipment was $60,000 more than its recorded carrying amount. The fair values and carrying amounts were equal for all other assets and liabilities. What amount of goodwill, related to Star's acquisition, should Penn report in its consolidated balance sheet

Answers

Answer 1

Answer:

$20,000

Explanation:

The question is missing some parts:

Penn Corp. paid $300,000 for the outstanding common stock of Star Co. At that time, Star had the following condensed balance sheet:

Carrying amounts

Current assets $40,000 Plant and equipment, net $380,000 Liabilities $200,000 Stockholders' equity $220,000

After a company is acquired, the parent company (the buyer) must record all the assets and liabilities at fair market value. In this case, the fair market value was higher than the carrying value by $60,000, therefore, the value of Penn's P,P&E must increase from $380,000 to $440,000. So total assets = $480,000, liabilities = $200,000, so equity = $480,000 - $200,000 = $280,000.

Since Goodwill represents the amount of money paid in excess of equity value, then Goodwill = $300,000 - $280,000 = $20,000


Related Questions

ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers? (in millions)

Answers

Answer:

the amount of cash received from customers is $97 million.

Explanation:

The cash received from customers can be determined by opening a Total Receivables T-Account.

Total Receivables T-Account

Debit :

Beginning Balance                                                        $6 million

Sales                                                                           $100 million

Totals                                                                          $106 million

Credit :

Ending Balance                                                             $9 million

Cash Received from Customers (Balancing figure)  $97 million

Totals                                                                          $106 million

Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition. Group of answer choices

Answers

Answer:

True

Explanation:

Intel is a major computer hardware supplier in the world, and its friend Microsoft buys hardware parts from them which it uses in manufacturing computers such as processor chips.

In respect to the bargaining power of suppliers in Porter's five forces model of industry competition, Intel acts as a supplier to Microsoft. And because of Intel's bargaining power like its market dominance and limited competitors, it can set prices which the–Microsoft has no choice but to purchase.

A vision statement describes… Group of answer choices selected aspects of company operations intended for dissemination to customers and competitors how a company wishes to view itself in the future as an extension of what it is doing now an organization’s customers, product, and chosen manner of bringing the product to the customer the organization’s idealized view of how it wishes to see its employee behave toward customers

Answers

Answer:

how a company wishes to view itself in the future as an extension of what it is doing now.

Explanation:

A vision statement describes how a company wishes to view itself in the future as an extension of what it is doing now. Generally, it is an ideal future conditions that aligns with the purpose for which an organization or business is in operation.

Simply stated, a vision statement answers the question of what an organization would want to be, by combining its current and future objectives.

For instance, XYZ company might state that its vision statement is to create a better everyday life for everyone living in the world.

Your new customer directs you to open a cash account. He wants to give trading authorization to his brother but does not want his brother to have any other authority in the account. The two required documents needed by your firm to open the account as directed would be a new account form and:___________.

Answers

Explanation:

get a better amount of money

Paula is 24 years of age and owns a $20,000 whole life policy with a guaranteed insurability rider. At age 25, Paula exercised her first option without proving insurability and purchased another $20,000 policy. At age 27 Paula contacted the insurer and asked if she could exercise her next option a year early. How will the insurer respond

Answers

Answer:

The insurer shall inform Paula  that she cannot move towards the next option date but she can buy some more insurance, by proving her insurability.

Explanation:

Insurability rider is a kind of option that is available only in some health insurance policies. Where it is guaranteed it provides for the extra benefit where the person can get to buy another insurances to following the minimums and maximums, but at a specific defined future dates.

This shall ensure for the benefit of the user buying the insurance as they do not have to go through any further examination for buying the insurance.

Here, also the insurer can ask her to buy another insurance as with the explained reasons stated above.

A manager is requested to help whenever there is a breakdown in a firm's production line. Which primary skills does this manager need to apply when such breakdowns occur

Answers

Answer:

engineering

Explanation:

if there is a break down the manager should be able to fix it using engineering.

In the _____ form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working relationship with individual buyers.

Answers

Answer: business to consumer

Explanation:

E-commerce simply means buying of goods and services online through the internet. Since it's a digitalized world now, this is common.

In the business to consumer form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working relationship with individual buyers.

is also known as ‘value chain’ a. Organizational Hierarchy b. Supply Chain c. Information Chain d. None of the above

Answers

Answer:

b. Supply Chain

Explanation:

The Supply Chain is the management of flow goods or services from the sourcing of suppliers of raw materials to the dispatcher of customer order. This is sometimes known as the value chain.

Jason Thomas has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thomas stand to lose?

Answers

Answer: $200,000

Explanation:

As this is a privately held corporation, the shareholders are not personally liable in the case of bankruptcy as they are separated from the business.

However, they will incur some liability which will be up to the extent of the money that they invested. In this case Jason invested $200,000 so should the company declare bankruptcy, Jason is liable up to only the amount that Thomas invested which would be $200,000.

On September 30, Year 5, Saucier Company declared a 15% stock dividend when its stock was selling for $10 per share. As a result, Saucier will issue 20,000 additional shares of its $2 par value common stock. All outstanding shares were originally issued for $6 per share. What will be the decrease to stockholders' equity as a result of the declaration and distribution of the stock dividend

Answers

Answer:

$0

Explanation:

There is no decrease in stockholders' equity resulting from this transaction. Simply, the retained earnings account decreases (debited) and the common stock and additional paid in capital accounts increase. E.g. when the stock dividends are declared the following journal entry must be made:

Dr Retained earnings 200,000

    Cr Common stock dividends distributable 40,000

    Cr Additional paid in capital 160,000

All the accounts involved in this transaction are equity accounts.

Zappos' saying is "We hope this is the last job you ever have." This demonstrates Zappos' focus on the _____ element in its operations.

Answers

Answer: a. human relations

Explanation:

Zappos saying that they hope their company will be the last company the employees work for is them saying that they hope their employees will find working in Zappos constantly alluring such that they would never want to leave (at least until retirement).

It can therefore be inferred from this that Zappos puts in the necessary effort to retain its employees by focusing on human relations in its operations such that employees fill more motivated and fulfilled at Zappos.

A business borrowed $51,873 on March 1 of the current year by signing a 30 day, 6% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a

Answers

Answer:

Debit to interest expenses for $259

Explanation:

Entry of Payment

Date       Account Title and Explanation     Debit        Credit

Mar 31.    Note Payable                                 $51,873

               Interest expenses                          $259

               ($51,873 * 6% * 30/360)

                       Cash                                                        $52,132

               (TO record payment)

The charter of a corporation provides for the issuance of 107,000 shares of common stock. Assume that 50,000 shares were originally issued and 11,500 were subsequently reacquired. What is the number of shares outstanding?

Answers

Answer:

The number of shares outstanding is 38,500

Explanation:

Issued shares                   50,000

Less:treasury stock         -11,500

Shares outstanding        38,500

A customer buys 100 shares of XYZ stock at $43 per share. The customer then sells 1 XYZ $45 Call contract for a premium of $500. The call contract expires unexercised. After expiration, the customer's cost basis in the XYZ shares is:________

Answers

Answer:

$4,300

Explanation:

Since the call expired, the $500 premium must be reported as a short term capital gain. Short term capital gains are taxed in the periods that they occur, so they do not affect the basis of the stocks. It is something similar to dividends, if you receive dividends they will be taxed as short term gains = ordinary income, bu they do not affect the stocks' basis.

The next dividend payment by Savitz, Inc., will be $2.35 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $44 per share, what is the required return

Answers

Answer:

10.34%

Explanation:

The next dividend payment by Savitz incorporation is $2.35 per share

The growth rate is 5%

= 5/100

= 0.05

The stock is currently being sold at $44 per share

Therefore, the required return can be calculated as follows

R= D1/Po + g

= $2.35/$44 + 0.05

= 0.0534+0.05

= 0.1034×100

= 10.34%

Hence the required return is 10.34%

The ASQ provides a technical definition of quality with two possible meanings, one of which refers to the characteristics of a product or service that… Group of answer choices are free of unintended variation in design or engineering bear on its ability to satisfy stated or implied needs reflect the right goal, at the right time, and for the right reason constitute a moving target in a competitive environment

Answers

Answer:

The correct option is;

bear on its ability to satisfy stated or implied need

Explanation:

The technical definition provided by ASQ on quality in the glossary web-page on the ASQ website is that the term quality is subjective that has different definitions given by different groups and that within a technical context two meanings can be understood from quality including;

1) A quality product or service is a product or service that is judged by its ability to live up to its outlined or implied needs

2) A deficiency free product.

When the list of all individuals who took the Graduate Management Admissions Test (GMAT) during the past year is used for selecting a simple random sample of students who took the GMAT, it is known as the:_______

Answers

Answer:

Sampling frame.

Explanation:

When the list of all individuals who took the Graduate Management Admissions Test (GMAT) during the past year is used for selecting a simple random sample of students who took the GMAT, it is known as the sampling frame. A sampling frame in statistics can be defined as a source or list comprising of people or items from which a sample is taken or drawn.

Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using Foursquare mobile app is an example of:_________

a. Mobile Commerce
b. Mobile eCommerce
c. Mobile Retailing
d. Mobile Marketing

Answers

Answer:

c. Mobile Retailing.

Explanation:

Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using Foursquare mobile app is an example of Mobile Retailing.

Mobile retailing can be defined as the process of buying or shopping for goods and services through the internet by using a smartphone, mobile device or tablets. It is one of the convenient ways, potential customers use to engage in e-commerce.

An individual's close relative, who was a resident of London, England, died six months ago. The client expects to receive an inheritance of a large sum of money. What is the fundamental risk the individual is concerned about

Answers

Answer: Currency risk

Explanation:

From the question, we are told that an individual's close relative, who was a resident of London, England, died six months ago and the client expects to receive an inheritance of a large sum of money.

The risk that can occur here is the currency risk, which is also called the exchange-rate risk, and it is due to change in a currency's price when compared to another currency. Currency risk can lead to profit or loss.

The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as:

Answers

Answer: Form utility

Explanation:

Form utility is defined as how well prepared a product is to serve a customer. In some scenario's, companies produce product to meet the exact need of the customer. The form on how prepared the product is or how ready it is for the market(customer) is known as form utility.

Which of the following statements concerning capital structure theory is NOT CORRECT?
A. The major contribution of Miller's theory is that it demonstrates that personal taxes decrease the value of using corporate debt.
B. Under MM with zero taxes, financial leverage has no effect on a firm's value.
C. Under MM with corporate taxes, the value of a levered firm exceeds the value of the unlevered firm by the product of the tax rate times the market value dollar amount of debt.
D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.
E. Under MM with corporate taxes, the effect of business risk is automatically incorporated because rsL is a function of rsU.

Answers

Answer: D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.

In order to receive positive cash returned on investment, the rate of return on an investment during periods of inflation should

Answers

Answer:

should exceed the rising price level.

Explanation:

Inflation occurs when there is a general increase in prices of goods and services in an economy. The price of a basket of goods increases so the purchasing power of money is reduced.

For example when a gallon of petrol sells for $50 under inflation it can rise to $100. More money will be needed to buy the same amount of goods.

In this situation the rate of return of an investment will need to be above the rising price level to maintain a positive cash flow.

This is because value of money has reduced so returns needs to be higher to make positive cash flow.

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential. Tyler has constructed a

Answers

Answer:

Business plan

Explanation:

A business plan is an outline that shows the objective of a business, the methods by which these objectives can be achieved, and the time frame within which the the goals need to be attained.

It serves as a roadmap that shows strategies a business intends to use to attain it's financial projections.

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential. This is a business plan that needs to be in place before Tyler seeks financial backing

The audience's perception of a speaker's competence, trustworthiness, and dynamism is termed A) credibility. B) charisma. C) character. D) personality.

Answers

Answer:

A) credibility

Explanation:

Credibility can be defined as the quality of being trusted and believed in.

The audience have been able to perceive the competence, trustworthiness and the dynamism of the speaker, and these are the criteria to judge credibility.

The major diversification strategy through which products are produced that are technically similar to the company’s current products but appeal to a new consumer group is:

Answers

Answer:

a. Concentric diversification

Explanation:

The concentric diversification is a diversification in which a company purchased or developed its new products that are closely related to that product in which the company is dealing in order to enter one or more markets

Here in the given situation, since the company produced that product that are same to their current markets so that they could enter into a new customer group so this represents the concentric diversification

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?
A) Many analysts fail to grasp the gravity of the problems facing a company.
B) Sell recommendations generate lower commissions than buy recommendations.
C) The firms for which analysts work may have lucrative investment banking relationships with the firm.
D) Analysts are often pressured by their superiors to overlook negative information.

Answers

Answer:

B

Explanation:

Analysts are involved in the assessment and evaluation of a business' risk and the report provided to relevant stakeholders.

The work of an analyst can be biased compared to an objective analysis due to certain factors.

Due to large of adequate knowledge or preparation , an analyst may fail to grasp the gravity of the problems facing a company. There may also be a lucrative investment banking relationship with the firms , hence the risks involved are not exposed early.

Another point is subjectivity , where an analyst is pressured to overlook negative information in order to provide an impressive information about its client

Nishimatsu's habit of chatting with flight attendants and working alongside them is one of the key characteristics that lead to a high-performing organization. Which is it

Answers

Answer: Being well informed

Explanation:

Customer service is the sole skill every organization should be out for. They are certain things done to clients that are outside the service but this minute things are what actually draw the client and makes them always come back for more of your services. Nishimatsu's capability to relate very well with flight attendants shows the good work the company would have emphasised in customer care.

According to rankings by many people over the years what is the number one expectation that people have a job they will enjoy

Answers

Answer:

The number one expectation is that the job uses people's abilities to the best, and makes them feel accomplished.

One possible explanation for this is Maslow's hierarchy of needs, in which the need of self-accomplishment is at the top, meaning that this is the need of the highest order.

If people feel that they are achieving self-accomplishment in their jobs, then, it is very likely that they enjoy it.

Neutronics makes four different models of gas identifiers. Next year, the company anticipates total overhead costs of $2.5 million. It also anticipates a combined 75,000 direct labor hours, 100,000 machine hours, 1,250,000 square feet occupied, and $5,000,000 of revenue across all its production lines. If Neutronics uses direct labor hours to allocate its overhead costs, the company's predetermined overhead rate should be: Group of answer choices

Answers

Answer:

Predetermined manufacturing overhead rate= $33.33 per direct labor hour

Explanation:

Giving the following information:

Next year, the company anticipates total overhead costs of $2.5 million.

Estimated direct labor hours= 75,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,500,000/75,000

Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $60,500, and Martin's capital balance $57,500. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 30% interest. Black will invest $31,500 in the partnership. The bonus that is granted to Black equals:

Answers

Answer:

????

Explanation:

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