During year 1, the Dell acquired 3 pieces of machinery at an auction for a lump sum price of $240,000. In addition, Dell paid $12,000 to have the machines installed. An appraisal disclosed the following values:
Machine A | $ 50,000 | |
Machine B | $ 150,000 | |
Machine C | $ 100,000 |
What costs should be assigned to Machines A, B, and C,
respectively?
$40,000, $120,000, and $ 80,000.
$42,000, $126,000, and $ 84,000.
$50,000, $150,000, and $100,000.
$84,000, $ 84,000, and $ 84,000.
During year 1, the Dell acquired 3 pieces of machinery at an auction for a lump...
On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following balance sheet Sanders Company Balance Sheet January 1, 20x9 Assets Liabilities and Equity Accounts Receivable $40,000 Current Liabilities $110,000 100,000 100,000 Inventory 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings 50,000 (10,000) 30,000 $460,000 Total Liabilities and Equity Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets 50,000...
1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved). Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and...
E10-16B (L03,4) (Asset Acquisition) Ogden Industries purchased
the following assets and constructed a building as well. All this
was done during the current year.
Asset 3
This machine was acquired by making a $25,000 down payment and
issuing a $75,000, 1-year, zero-interest-bearing note. The note is
to be paid off in at the end of the first year. It was estimated
that the asset could have been purchased outright for $91,000.
Asset 4
This machinery was acquired by trading in...
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for...
Monte Company acquired 70% of the stock of Mo Company on 1
January 2018, for $150,000. On this date, the balances of Mo’s
stockholders’ equity accounts were: Common Stock, $130,000, and
Retained Earnings, $14,000. On 1 January 2018, the market value for
the 30% of shares not purchased by Monte was $63,800. On 1 January
2018, Mo’s recorded book values were equal to fair values for all
items except: (1) accounts receivable had a book value of $40,000
and a...
1. You have been assigned to examine the financial statements of Jackson Inc. for the year ended December 31, 2019. You discover the following situations in February 2020. Jackson Inc. has not accrued salaries payable at the end of each of the last 3 years, as follows. Salaries are expensed when paid. December 2017 $5,500 December 2018 $7,800 December 2019 $0 2) The physical inventory count has been incorrectly counted resulted in the following errors. December 2017 Overstated $20,000...
1. You expect to receive the following payments: end of year 1 $10,000 2 $10,000 3 $10,000 4 $10,000 You plan to invest these payments in stock funds. If your investments earn 9% per year, how much will you have at the end of the 15th year? a) $166,574 b) $108,261 c) $118,005 d) $152,820 e) $128,625 2. Your neighbor Bob has two annuities. The first annuity will pay him $10,000 per month for the next 10 years. The second...
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RBB RETAILING CORPORATION Statement of Comprehensive Income For the year ended December 31, 2020 Net sales Less: Cost of sales 3,380,000 2,566,000 Gross profit 814,000 Less: Operating expenses Selling expenses General and administrative expenses Income before income tax 260,500 352,200 612.700 201,300 Less: Income tax expense 60,390 Net profit 140,910 Included under General and Administrative Expenses...