Pumped Up Company purchased equipment from Switzerland for 140,000 francs on December 16, 20X7, with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SFr 1 = $0.45. On December 31, 20X7, the forward rate for an exchange on February 14, 20X8, is SFr 1 = $0.475. The spot rates were

Answers

Answer 1

Answer:

Kindly check the explanation section because the answer is long.

Explanation:

(1). Date: December 16.

Details: Equipment = 140,000 × .46 = 64,400.

Accounts payable(Sfr) = 140,000 × .46 = 64,400.

Foreign currency received from broker(Sfr) = 140,000 × .45 = 63,000.

Dollar payable to exchange broker($) 140,000 × .45 = 63,000.

(2). Date: December 31.

Details= foreign currency transaction loss = 140,000 × ( .48 - .46) = 2,800

Revaluation of Accounts payable(Sfr) = 140,000 × ( .48 - .46) = 2,800

Foreign currency received from broker (Sfr) = 140,000 × (.475 - .45) = 3,500.

Foreign currency transaction gain= 140,000 × (.475 - .45) = 3,500.

(3). Date : February 14.

Details: Foreign currency transaction loss = 140,000 × (.475 - .47) = 700

Foreign currency receivable from broker = 140,000 × (.475 - .47) = 700

Account payable = 140,000 × (.47 - .48) = - 1,400 = 1,400.

Foreign currency transaction Gain= 140,000 × (.47 - .48) = - 1,400 = 1,400

Dollars payable to exchange broker = 140,000 × .45 = 63,000

Cash = (140,000 × .45) = 63,000

Foreign currency uni(Sfr) = 140,000 × .47 = 65,800.

Foreign currency receivable from broke(Sfr) = 140,000 × .47 = 65,800.

Accounts payable(Sfr) =140,000 × .47 =65,800.

Foreign currency units(Sfr) = 140,000 × .47 = 65,800.


Related Questions

Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?

Answers

Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?

ANSWER:

Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.

If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.

Answer:

At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.

In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.

Explanation:

Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods sold. Cost of goods sold for February is projected at $45,000. Ending inventory at the end of January was $12,000. Based on this information, purchases for February would be:

Answers

Answer:

Purchases for February would be: $46,500

Explanation:

Prepare a Purchases Budget to find the Purchases for February.

Purchases Budget for February

Budgeted Cost of Sales                                                    $45,000

Add Budgeted Closing Inventory ($45,000 × 30%)         $13,500

                                                                                           $58,500

Less Budgeted Opening Inventory                                 ($12,000)

Budgeted Purchases                                                         $46,500

How do businesses and the society benefit from marketing?

Answers

Answer:

Marketing stimulates a competitive economy, promotes products and services, and targets consumers who are most likely to become purchasers. Higher sales for a company that employs effective marketing strategies translate into expansion, job creation, higher government tax revenue, and eventually, overall growth.

HAVE A GOOD DAY!

Which of the following is one of the three variables proposed by a basic OB model which refers to actions that individuals, groups, and organizations engage in as a result of inputs?

a. Processes
b. Scrutinization
c. Planning
d. Association
e. Evaluation

Answers

Answer:

a. Processes

Explanation:

The variable that is being described as part of the basic OB model is known as Processes. Like mentioned, these are actions that individuals, groups, and organizations all engage in as a result of inputs, and that leads to certain outcomes. When dealing at an individual level, these processes include a wide range of actions including emotions, moods, motivation, perception, and decision making.

Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes. Since I am in favor of bigger government, I choose a(n) _________________ in _________________.

Answers

Answer:

The choice of fiscal policy measures is between ___increased_____________ government spending and a ____decrease___________ in taxes. Since I am in favor of bigger government, I choose a(n) ____increase_____________ in ____governmental spending_____________.

Explanation:

Government employ two fiscal measures to drive the economy toward stability.  They are taxation and government expenditure.  Depending on the desired outcome and the prevailing circumstances, an increase in taxation reduces the propensity to consume, thus fueling increased savings and investments.  Increased government expenditure galvanizes the economy to grow and the increased expenditure acts as a stimulus to economic activities.  But fiscal policy measures are not used in isolation.  They are complemented by monetary policies by the Federal Reserve.

"If the regulations for environmental protection were strictly adhered to and industries, cities, and individuals considered the environment crucial for survival and a thriving market, what would be the benefits from this change

Answers

Explanation:

The benefits arising from complying with an environmental protection regulation would be diverse for society, for companies and for the environment as a whole.

It is ideal to recognize the scarcity of natural resources, and knowing how to preserve them as citizens is everyone's duty. Environmental awareness and compliance with regulations would lead to significant changes in quality of life, air, water, decrease the greenhouse effect, decrease respiratory diseases, etc.

For the industry, complying with environmental regulation makes it better positioned in the market, attracts more investors, motivates employees more, reduces unnecessary risks and costs in addition to enhancing the continuous improvement of processes as a whole.

Watson consulting, llc is a consultancy to consultants. They have bonds which have a face value of $1,000. The bonds carry a 3.5 percent semi-annual coupon, and mature in 10 years. What is the current price of these bonds if the yield to maturity (the going market rate, rd) is 5 percent

Answers

Answer:

The current market price is $ 883.08  

Explanation:

The current market price can be ascertained using the pv excel function as follows:

=-pv(rate,nper,pmt,fv)

rate is the semiannual yield to maturity which is 5%/2

nper is the number of semiannual coupons in the bond i.e 10*2=20

pmt is the semiannual coupon=3.5%*1/2*$1000=$17.5

fv is the face value of the bond

=-pv(5%/2,20,17.5,1000)=$ 883.08  

Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

Answers

Answer:

False

Explanation:

Preference stock is a type of ownership of equity whereas the bond is the form of debt. The preference stock is the stock in which the dividend is fixed and to be paid before paying the common shareholders.

it includes the features like no voting rights, fixed dividend

Therefore the given statement is false

The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?
A) Data warehousing
B) strategic planning competitive marketing intelligence
D) customer relationship management
E) ethnographic research

Answers

Answer:

The answer is C. competitive marketing intelligence

Explanation:

Competitive marketing intelligence may be a powerful research-based method employed by a company to collect, analyze, and use information collected on competitors, economic conditions, customers etc to a achieve business's competitive advantage.

The information-gathering analysis process can help a corporation develop its strategy or identify competitive gaps. It identifies threats and opportunities within the business

Calvert Corporation expects an EBIT of $25,300 every year forever. The company currently has no debt, and its cost of equity is 15.3 percent. The company can borrow at 10.1 percent and the corporate tax rate is 25 percent. a. What is the current value of the company

Answers

Answer:

Value of the company = $124,019.61

Explanation:

The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return.

In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity.

The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.

And the  value of the company would be determined as follows

Value of the company = Earnings after tax/Cost of equity

Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975

Cost of equity = 15.3%

Value of the company = 18975 /0.153= 124,019.6078

Value of the company = $124,019.61

definition of home trade​

Answers

Answer:

Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail

The total payroll of trolley company for the month of october was 960000 of which 180000 represented amounts paid to certain employees in excess of 137000 maximum subject ot social security tax $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. What amount should Trolley record as payroll tax expense?

Answers

Answer:

$68,760  

Explanation:

The computation of the payroll expense is shown below:

FICA taxes ($960,000 - $180,000) × (7.65% - 1.45%) $48,360

Medicare ($960,000 × 1.45%)                                       $13,920

State unemployment tax {($960,000 - $600,000) × 1%}  $3,600

Federal unemployment tax {($960,000 - $600,000) × 0.80%} $2,880

Total                                                                                  $68,760  

In a "perfect world" capital market, how important is a firm's decision to pay dividends versus repurchase shares? Under what conditions would you have a tax preference for share repurchase rather than dividends? Would managers acting in the interests of long-term shareholders be more likely to repurchase shares if they believed the stock to be either undervalued or overvalued?

Answers

Answer and Explanation:

A business may use its extra funds to return it to the shareholders, by either paying cash dividends to the company's existing shareholders or by buying back its own shares. Dividends are a profit-share. Dividends are paid out of an enterprise's net profit (PAT).

Now

On the other way, by way of equity buyback plans, a company can use its money to repurchase its assets. A buyback would decrease a company's a number of shares outstanding and significantly increase the long-term earnings per share ( EPS), and cash flow per share.

The decision of a corporation to pay a dividend and repurchase shares is significant as it can use such actions to manage the investors' interests and the corporation's interest.

Although dividend payment provides greater stability for a company's shareholders, the buy back of shares presents a greater level for the company concerned.

Dividends offer the shareholders flexibility by allowing them to make use of the allocated income in whatever way they see fit. Secondly, the dividend benefit for the shareholders is assured.

The buy back of shares from the other hand is also more desirable for taxation purposes. Dividends are taxable although no taxes are required in case of share repurchases till the moment in time when the securities will finally be sold.

Managers serving the interests of shareholders, particularly long-term shareholders, are more likely to purchase shares if they think the shares are undervalued, i.e. trading at a price below its intrinsic value.

It is due to the number of shares outstanding decreases as the securities are bought back and therefore the earnings per share ( EPS) and cash flows per share increase.

These enhancements help push share prices in the second hand market. This implies that the stock price in the secondary market is no longer at a point below its intrinsic value.

This initiative would mean that securities are no longer underpriced in the long term, thereby protecting the interests of long-term investors.

If a monopolist in an industry characterized by monopoly features is making economic profit in the short run, which of the following is true for this firm in the long run? (Assume that costs and demand are held constant)
a. The monopolist will be able to sustain economic profits.
b. The monopolist will make normal profit because firms will enter the industry.
c. The monopolist will make normal profit because no firms will enter the industry.
d. The monopolist will make a loss.

Answers

Answer: The monopolist will be able to sustain economic profits

Explanation:

If a monopolist in an industry characterized by monopoly features is making economic profit in the short run, then the monopolist will be able to sustain economic profits.

The economic profit is gotten when the explicit cost and the opportunity costs are both deducted from the revenues generated by a business.

Since there is high barrier to entry and the monopoly is the only firm in the market, then the monopolist will be able to sustain economic profits.

Sheffield Corp. had net credit sales of $13011000 and cost of goods sold of $9333000 for the year. The average inventory for the year amounted to $1442000. The average days in inventory during the year was approximately:______

Answers

Answer:

56.2

Explanation:

Inventory turnover = Cost of goods sold / Average inventory

= $9,333,000 / $1,442,000

= 6.5 times

Average days in inventory during the year = 365 / 6.5

= 56.2 days

If a company wants to predict how much money it can make this coming year, it would benefit from developing a: short-term forecast. consolidated income statement. statement of cash flows. master budget.

Answers

Answer: short-term forecast

Explanation:

The Short-term in business refers to a period a year or less. A Short-term forecast therefore allows for a business to predict its needs and potential receipts within a period of a year or less. Short-term forecasts would include the expenses, revenues, and hence income that a company believes it will receive in the next year or less. The company can therefore be able to predict how much it will make in the coming year using a Short-term forecast.

Jacobsen Corporation prepares its financial statements applying U.S. GAAP. During its 2016 fiscal year, the company reported before-tax income of $621,000. This amount does not include the following two items, both of which are considered to be material in amount: Unusual gain $201,000 Loss on discontinued operations (301,000) The company's income tax rate is 30%. In its 2016 income statement, Jacobsen would report income from continuing operations of:

Answers

Answer:

Jacobsen Corporation

Income from continuing operations of $621,000 will be reported.

Explanation:

The income from continuing operations is the same thing as the operating income.  It is the pre-tax income that is reported on Jacobsen Corporation's income statement for the year ended December 31, 2016.  The tax rate of 30% is applied on this figure to obtain the income tax expense for the year.  But, for Jacobsen that has other unusual items, these are taken into consideration before the income tax is imputed to obtain the after-tax income.

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $500,000, and direct labor costs to be $250,000. Actual overhead costs for the year totaled $520,000, and actual direct labor costs totaled $280,000. At year-end, the balance in the Factory Overhead account is a:

Answers

Answer:

Under/over applied overhead= $40,000 overallocated

Explanation:

Giving the following information:

Estimated overhead= $500,000

Estimated direct labor costs= $250,000

Actual overhead costs for the year totaled $520,000, and actual direct labor costs totaled $280,000.

First, we need to calculate the predetermined overhead rate:

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

Predetermined manufacturing overhead rate= 500,000/250,000

Predetermined manufacturing overhead rate= $2 per direct labor cost

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2*280,000= $560,000

Finally, we can determine the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 520,000 - 560,000= $40,000 overallocated

Assume a competitive firm faces a market price of $60, a cost curve of C = 0.004q^3 + 30q + 1000, and a marginal cost of curve of: MC = 0.009q^2 + 25.

a. The firm's profit maximizing output level (to the nearest tenth) is ___units, and the profit (to the nearest penny) at this output level is $____.
b. This will cause the market supply to (shift right/shift left). This will continue until the price is equal to the minimum average cost of $____.

Answers

Answer:

a) q = $62.36

b) As the profit level is NEGATIVE ( π = - 99.21 ), this will cause the market supply to shift left. This will continue until the price is equal to the minimum average cost of $60.

Explanation:

Given that; the market price P = $60

The cost curve is C = 0.004q³ + 30q + 1000

The marginal cost of curve of MC = 0.009q² + 25

We know that the condition for the profit maximizing level of output is MC=P

∴ 0.009q² + 25 = 60

0.009q² = 35

q² = 35 / 0.009

q² = 3888.88888

q = √3888.88888

q = $62.36

Now we calculate profit at the equilibrium output

π = TR -TC

π = ( P × Q ) - TC

we know TC = 0.004q³ + 30q + 1000

now we substitute

so π = ( 60 × 62.36 ) - { 0.004(62.36)³ + 30(62.36) + 1000

= 3741.6 - ( 970.01 + 1870.8 + 1000

= 3741.6 - 3840.81

π = - 99.21

As the profit level is NEGATIVE, the supply curve shifts left

Average cost is the cost per unit of output.

Average Cost = TC / q

Average Cost = (0.004q³ + 30q + 1000) / q

Average Cost = 0.004q² + 30 + 1000/q

Now equate the derivative of AC with zero

i.e  ΔAC/Δq = 0

Δ/Δd{ 0.004q² + 30 + 1000/q } = 0

0.008q - 1000/q² = 0

0.008q = 1000/q²

0.008q³ = 1000

q³ = 125000

q = ∛125000

q = 50

Average cost at this point will be

AC = 0.004q² + 30 + 1000/q

= 0.004 (50)² + 30 + 1000/50

= 10 + 30 + 20

= $60

As the profit level is NEGATIVE ( π = - 99.21 ), this will cause the market supply to shift left. This will continue until the price is equal to the minimum average cost of $60.

Suppose you deposit ​$ cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.​0?

Answers

Answer:

If the required reserve ratio is 0, that means that the money multiplier will be infinite. I guess the question is incomplete.

I looked for similar questions to fill in the blanks:

If you deposit $2,400 and the required reserve ratio is 0.4, then by how much does the money supply increase?

first we must determine the money multiplier = 1 / required reserve ratio = 1 / 0.4 = 2.5

to determine the total effect on the money supply we just multiply the deposit by the multiplier = $2,400 x 2.5 = $6,000 increase.

Parton and Sons is a law firm that uses activity-based costing. Classify these activities as value-added or non-value-added:

a. Taking appointments
b. Reception
c. Meeting with clients
d. Bookkeeping
e. Court time
f. Meeting with opposing attorneys
g. Billing
h. Advertising

Answers

Answer:

The answer is:

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

Explanation:

In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

If Tamarisk, Inc. realizes a loss of $9400 on a cash sale of office equipment having a book value of $93600, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Answers

Answer:

The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.

Explanation:

Cash flow from Investing Activities involve the Purchase and or sale of Capital Investments in the business.

The only cash item from Investing Activity for Tamarisk, Inc in the sale of office equipment is the Proceeds or Selling Price that it received in the sale transaction.

Calculation of the Sale Proceeds :

Hint : Open an Office Equipment Disposal T - Account

Office Equipment Disposal T - Account

Debit :

Book Value                               $93,600

Totals                                        $93,600

Credit :

Profit and Loss                           $9,400

Proceeds (Balancing figure)    $84,200

Totals                                        $93,600

Conclusion :

The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.

Assume a nominal interest rate on one-year US Treasury Bills of 4.60% and a real rate of interest of 2.50%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the US over the next year

Answers

Answer:

2.0488%

Explanation:

Fisher Effect Equation = ( 1 + nominal rate ) = ( 1 + inflation rate ) x (1 + real rate)

= ( 1 + 0.046) = ( 1 + inflation rate ) x (1 + 0.025)

( 1 + inflation rate )  = ( 1 + 0.046)  / (1 + 0.025)

( 1 + inflation rate )  = 1.020488

Inflation rate = 1.020488 - 1 = 0.020488 = 2.0488%

Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit? Group of answer choices

Answers

Answer:

$2,500

Explanation:

The calculation of American opportunity tax credit is shown below:-

According to the given situation, Steve's part-time job wouldn't come in between his not applying for the credit as the AGI is lower than the applying number.

Therefore, the credit would be 100% of first is

= $2,000 + 25% (Increased)

= $2,500

Which of the following is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties?
a. Estimated liability under warranties
b. Warranty expense
c. Unearned warranty revenue
d. Warranty revenue

Answers

Answer: Unearned warranty revenue

Explanation:

Unearned warranty revenue is usually shown as an unearned revenues in the accrued liabilities during the preparation of the balance sheets.

It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.

Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 $ 0 Year 2 $ 6,000 Year 3 $ 32,000 ​ The amount of dividends paid to preferred and common shareholders in Year 2 is:

Answers

Answer:

In Year 2 Preferred Stockholders were paid $6,000 , whilst Common Stockholders were paid $0.  

Explanation:

The Preference Shareholders have preference over the Common Stockholders when it comes to payments of dividends.

Also when the Preference Stocks are cumulative, it means that any dividends in arrears need to be honored before the next dividend distribution.

Preference Stock Dividend is the same per year and is calculated as follows :

Preference Stock Dividend = 7,000 × $10 × 5%

                                             = $3,500

Summary of Dividends Paid are as follows :

Year 1

Preference Stock Dividend Paid = $0

Common Stock Dividend Paid = $0

Preference Stock Dividend in Arrears = $3,500

Year 2

Preference Stock Dividend in Arrears for year 1 paid = $3,500

Preference Stock Dividend Paid for year 2 = $ 2,500

Preference Stock Dividend in Arrears = $1,000

Common Stock Dividend Paid = $0

Conclusion :

In Year 2 Preferred Stockholders were paid $6,000 whilst Common Stockholders were paid nothing.  

An account becomes uncollectible Group of answer choices when an account receivable is converted into a note receivable when a discount is availed on notes receivable There is no general rule for when an account becomes uncollectible. at the end of the fiscal year

Answers

Answer:

There is no general rule for when an account becomes uncollectible.

Explanation:

An account becomes uncollectible when an account receivable is written-off due to different situations, which means that there is no general rule for when an account becomes uncollectible.

For example, an account can become uncollectible if the debtor becomes unsolvent. It can also become uncollectible if the firm is victim of fraud, or if the firm itself decides to write-off the account due to company policy.

The exit-voice-loyalty-neglect (EVLN) model Multiple Choice outlines the four consequences of emotional intelligence. is a template for organizing and understanding the consequences of job dissatisfaction. identifies the four ways to manage employee emotions. explains why the psychological contract differs between employees and their employers.

Answers

Answer:

is a template for organizing and understanding the consequences of job dissatisfaction.

Explanation:

From it's name, the EVLN tells us four ways that Employees respond when they are dissatisfied with their job.

E stands for Exit which means going elsewhere to look for other job opportunities, it means leaving the organization or transferring to another unit.

V stands for Voice which means trying to change the situation of things rather than escaping from that dissatisfying situation. It can be constructive or destructive.

L stands for Loyalty such Employees in this category respond to dissatisfaction by waiting patiently for the issue to be solved out with time or by other.

N stands for Neglect which means putting in less work, reducing quality and also acts of absenteeism and lateness.

Brooke and Katie went shopping for cleaning supplies. Brooke chose products from well-known brands. However, Katie compared the price difference between well-known brands and the local store brands. Brooke explained that her mother always used well-known brands and taught her that local store brands just don’t clean as well. Apparently, _____ factors were a major influence on Brooke’s choices.

Answers

Answer:

Social

Explanation:

Social defines the status in a society or in a company and where we are living in the society interacts with the people to enhance our status, skills, etc.

Therefore according to the given situation Brooke and Katie went for purchasing to buy cleaning supplies. Here Katie is comparing the products price with local store while Brooke selects well known brands.

In this scenario Brook makes understand to Katie that local product is not good in comparison to well know brand. So, social factors affects on Brooke choice.

has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value of Kate's assets is $ 15 comma 000 comma 000 ​(market value, $ 17 comma 000 comma 000 ​), and it has liabilities of $ 13 comma 000 comma 000 ​(market value, $ 13 comma 000 comma 000 ​). Requirements 1. Compute the cost of goodwill purchased by Patton . 2. Record the purchase of Kate by Patton .

Answers

Answer and Explanation:

1. The amount of goodwill is shown below:

= Purchase price - the market value of net assets

= $6,000,000 - ($17,000,000 + $13,000,000)

= $2,000,000

2. Now the journal entry for purchase is

Assets $17,000,000

Goodwill $2,000,000

      To Liabilities $13,000,000

      To Cash $6,000,000

(Being the purchase is recorded)

For recording this we debited the assets and goodwill as it increased the assets and credited the liabilities and cash as it also increased the liabilities and decreased the assets

Other Questions
Which equations represents inverse variation? Check all that apply How are motifs used in literature?O A. To convey an important idea by using a pattern repeatedly within astoryB. To provide readers with a pattern that is easy to solve or decipherC. To offer readers a pattern of behavior that is new and uniqueD. To present a well-known pattern that is easily recognizable toreaders I will give the brainliest answer to someone who tells me what friction is In order to determine the average price of hotel rooms in Atlanta, a sample of 64 hotels was selected. It was determined that the average price of the rooms in the sample was $112 with a standard deviation of $16. Use a 0.05 level of significance and determine whether or not the average room price is significantly different from $108.50.Which form of the hypotheses should be used to test whether or not the average room price is significantly different from $108.50? H0:a. mu is greater than or equal to $108.50b. mu is greater than $108.50c. mu is less than $108.50mu is less than or equal to $108.50d. mu is equal to $108.50mu is not equal to $108.50Ha: a. mu is greater than or equal to $108.50b. mu is greater than $108.50mu is less than $108.50c. mu is less than or equal to $108.50d. mu is equal to $108.50mu is not equal to $108.50 Help me please, it's so hard a) five benefits of havingan operating system over not having one. Band kids :) when I call commands I can feel my diaphragm pushing the air out but it still hurts my throat?Im trying out for Drum Major and the command portion is very important. Ive already tried the Ha exercise; it doesnt work for me? Also, my commands sound like yells and not full Which paragraph in the excerpt from Amy Tans Rules of the Game best shows a conflict between two cultures?My mother patted the flour off her hands. "Let me see book," she said quietly. She scanned the pages quickly, not reading the foreign English symbols, seeming to search deliberately for nothing in particular."This American rules," she concluded at last. "Every time people come out from foreign country, must know rules. You not know, judge say, Too bad, go back. They not telling you why so you can use their way go forward. They say, Don't know why, you find out yourself. But they knowing all the time. Better you take it, find out why yourself." She tossed her head back with a satisfied smile.I found out about all the whys later. I read the rules and looked up all the big words in a dictionary. I borrowed books from the Chinatown library. I studied each chess piece, trying to absorb the power each contained.I learned about opening moves and why it's important to control the center early on; the shortest distance between two points is straight down the middle. I learned about the middle game and why tactics between two adversaries are like clashing ideas; the one who plays better has the clearest plans for both attacking and getting out of traps. A basketball team plays half of its games during the day and half at night. Ten scores from day games and ten scores from nightgames were randomly selected by the team's statistician. The following statistical information was calculated from the final gamescores.Day NightMean 58 72Median 46 63Mode 50. 70Range 21 33Based on these samples, what generalization can be made?A. The basketball team scored the same number of points in day games as night games.OB. The basketball team scored more points in night games than in day games.OC. The basketball team scored more points in day games than in night games.OD. Not enough information is provided to draw any of these conclusions, PLEASEEEEEEEEEEEEE HELPPPPPPPPPPP! If 4 bushels of oats weigh 58 kg, how much do 6.5 bushels of oats weigh? Identify which equations have one solution, infinitely many solutions, or no solution. No Use the given categorical data to construct the relative frequency distribution. Natural births randomly selected from four hospitals in a highly populated region occurred on the days of the week (in the order of Monday through Sunday) with the frequencies 53, 63, 68, 58, 61, 43, 54. Does it appear that such births occur on the days of the week with equal frequency? the product of five and a certain number is twelve Read the excerpt from chapter 2 of Night. We tried to reason with her, more to calm ourselves, to catch our breath, than to soothe her: "She is hallucinating because she is thirsty, poor woman . . . That's why she speaks of flames devouring her . . . But it was all in vain. Our terror could no longer be contained. Our nerves had reached a breaking point. Our very skin was aching. It was as though madness had infected all of us. We gave up. A few young men forced her to sit down, then bound and gagged her. Holly wants to save money for an emergency. Holly invests $500 in an account that pays an interest rate of 6.75% How many years will it take for the account toreach $14,300? Round your answer to thenearest hundredth. What is the value of the expression *picture attached* Consider a normal distribution with mean 21 and standard deviation 4. What is the probability a value selected at random from this distribution is greater than 21 I believe this is pretty easy but it's: solve for x using common denominators 3/4(x+2)=x/(x+3) Answer choices below: Why would satellite imagery be more useful than a map in some instances?