Homework Answers
Answer c. Expensed in the period incurred.
Explanation:
As per GAAP, acquisition related costs such as: valuation cost, legal & advisory fees , consultation fees etc incurred by the acquirer during the business combination process shall be recognized or expensed in the period in which such costs are incurred.
Add Answer to:
Expenses associated with an acquisition should be a. Netted against goodwill or the gain on bargain...
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be...
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be written off because it has an indefinite life. written off as soon as possible as an expense. amortized over a maximum of forty years. For accounting purposes, goodwill: is recorded whenever a company achieves a level of net income that exceeds the industry average. is recorded when a company purchases another business. is expensed in the period it is recorded because benefits from goodwill...
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over...
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over a discretionary period. B. charged to retained earnings when incurred. C. expensed in the period incurred. D. considered a part of the total cost of the acquired company.
During 2016, Debbie Company incurred $240,000 in legal fees in defending a patent with a carrying...
During 2016, Debbie Company incurred $240,000 in legal fees in defending a patent with a carrying value of $4,500,000 against an infringement. Debbie's lawyers were not successful with the defense of the patent. The legal fees should be... Select one: a. capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter. b. expensed in 2016 and classified as ordinary expenses. c. capitalized and amortized over the remaining legal life of the patent. d....
Atold Corporation reports goodwill of $40 million on acquisition of Benholm Company. One month later, Atold...
Atold Corporation reports goodwill of $40 million on acquisition of Benholm Company. One month later, Atold learns that Benholm's portfolio of AFS debt investments is worth $3 million more than estimated at the date of acquisition. How is this reported, if the information is (1) a better estimate of the portfolio's value at the date of acquisition (within the measurement period), or (2) is due to events occurring subsequent to the acquisition (after the measurement period). (1) Within the measurement...
Interest costs can be capitalized on interest incurred during the period of construction on loans for...
Interest costs can be capitalized on interest incurred during the period of construction on loans for self-constructed assets. interest incurred on notes payable used to purchase inventory for resale. interest incurred on installment loans secured by assets currently used in operations. none of these choices; interest charges must always be expensed. Companies record depreciation on equipment to bring the asset's book value to its fair market value. allocate its cost to expense over its useful life. recognize gains in its...
Answers? amortized over its useful life? would be 11. Which of the following A, $100,000 spent...
Answers?
amortized over its useful life? would be 11. Which of the following A, $100,000 spent the B. $25,000 paid to successfully C. $150,000 paid for the exploratianof a natural resource deposit. D. $75,000 paid to purchase a regstered trademark spent on the development of a 12. Which of the following costs should be expensed when incurred? A. Replacement cost of machine component which extends the machine's useful life B. Cost of a machine which will be used exclusively for...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $37,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information? a. A debit of $12,000 to Loss...
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31, 2018, but had slipp...
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31, 2018, but had slipped to $1,390,000 by December 2019. In financial statements prepared on december 31, 2019, Lily corporation reports: a. The asset investment in marketable securities at $1,320,000 with footnote disclosure of the market value of $1,400,000. b. The asset investment in marketable securities at $1,390,000 and a $70,000 gain recognized in the income...
14. Which of the following statements regarding the calculation of the lessee's depreciation expense for a...
14. Which of the following statements regarding the calculation of the lessee's depreciation expense for a finance lease is true? a. The bargain purchase option price is deducted from the original cost capitalized, and the difference is allocated over the estimated economic life of the asset. b. The bargain purchase option price is included in the original cost capitalized, and depreciated over the term of the lease. c. The unguaranteed residual value is included in the original cost capitalized, and...
All differences between the amount of income tax payable and the amount of income tax expense...
All differences between the amount of income tax payable and the amount of income tax expense can be classified as either permanent differences or temporary differences. A num- ber of items that may give rise to differences are as follows: A. Season tickets are sold in advance by the Jacksonville Jaguars football team. B. Available-for-sale securities decreased in value during the year. C. A company accrues interest on a note receivable in the period before the borrower pays. D. Subsequent...
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over a discretionary period. B. charged to retained earnings when incurred. C. expensed in the period incurred. D. considered a part of the total cost of the acquired company.
Answers?
amortized over its useful life? would be 11. Which of the following A, $100,000 spent the B. $25,000 paid to successfully C. $150,000 paid for the exploratianof a natural resource deposit. D. $75,000 paid to purchase a regstered trademark spent on the development of a 12. Which of the following costs should be expensed when incurred? A. Replacement cost of machine component which extends the machine's useful life B. Cost of a machine which will be used exclusively for...
All differences between the amount of income tax payable and the amount of income tax expense can be classified as either permanent differences or temporary differences. A num- ber of items that may give rise to differences are as follows: A. Season tickets are sold in advance by the Jacksonville Jaguars football team. B. Available-for-sale securities decreased in value during the year. C. A company accrues interest on a note receivable in the period before the borrower pays. D. Subsequent...
Most questions answered within 3 hours.
-
Briefly describe:
Investigating and assessing the impact of cost management
quality (CMQ) on the:
(a) effectiveness...
asked 1 hour ago -
Part A:
Use Henry's law to determine the molar solubility of helium at a
pressure of...
asked 2 hours ago -
Can you store the following chemicals in the same storage area:
yes, no and why
a....
asked 4 hours ago -
Hello class,
I found this article to be very interesting and relevant to the
concepts we...
asked 4 hours ago -
Consider the following relational database schema, which
describes the schedule of competition among National Football
(soccer)...
asked 5 hours ago -
Use the answer choices below for the next ____
questions
A) The Heart B) Veins C)...
asked 5 hours ago -
(Java) HELP!
Create a program that will ask the user to enter their first
name and...
asked 5 hours ago -
Suppose that the weight of an newborn fawn is Uniformly
distributed between 2.5 and 4 kg....
asked 6 hours ago -
Java Programming:
Make a Java program with two processes, a producer and a
consumer. If you...
asked 6 hours ago -
A pressure as low as 1 ✕ 10-8 torr can be achieved
using an oil diffusion...
asked 6 hours ago -
Identify the 6 major steps in an operational analysis
and briefly describe what each step is...
asked 6 hours ago -
The nucleus of the atom is composed of subatomic particles, one
of them being the proton...
asked 6 hours ago