The need for valuation of goodwill arises under the following substistences brielfly explain it.??
Change in the profit sharing ratio a months the existing partners
Admission of a new partner
Retirement of a partner
Death of a partner
Jim has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios.During its first month of activity, the company has made the following transactions:Kg Price per Kg AmountFebruary 2: Purchase of Pistachios: 2500 $11 $27,500Purchase of Almonds: 4000 $6 $24,000Purchase of Peanuts: 6000 $4 $24,000February 3: Purchase of Pistachios: 1500 $13 $19,500Purchase of Almonds: 2000 $7 $14,000Purchas of Peanuts: 2000 $5 $10,000February 6: Sold to several clients:Pistachios: 2000 $21 $42,000Almonds: 2500 $12 $30,000Peanuts: 3000...
Corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2016. Razorback Sports took the maximum amount of §179 depreciation (no bonus depreciation). The equipment is all 7 year property. Cost of the equipment832,500Accumulated depreciation (as per Trail balance)416,250Depreciation expense (as per Trail balance)22,200find the following1) Amount that Need to consider in Form 1120 under line no 20 Depreciation.2) Amount that Need to consider in Form 1120 under Schedule M-1 line No 8a.with...
What are major important factors that will determining the goodwill. Mention that point only. Five mark
Rama, brothers earn a net profit of Rs 25000 with a capital of Rs 200000.The normal rate of return in the business is 10% . Use capitalization of super profit method to value the goodwill
The goodwill of a firm is estimated at three years purchase of the average profits of the last 5 years are as follows Year profit 1999 100002000 150002001 50002002 5000loss2003 8000
The average profit of a firmfor the last five years is rs 20000 and the capital invested is rs 130000.the normal profit of the similar line of a business is 10% . Calculate the amount of goodwill if it is 2 years purchase of super profit
If in the firms total capital employed is Rs 100000 and the normal rate of return is 6% the average profit for for the last 5 years is Rs 15000 and goodwill is estimated at 3 years purchase of super profits. Remuneration given to partners was Rs 2000
helion venture is a venture capital firm that is interested in investing in mayur soft Pvt ltd Mr Ramesh started Mayur software about a year back with a focus on developing software products for the banking and financial services market. at that time Mr Ramesh invested rsb10,00,000 of his savings to kick start the venture and he was issued 100,000 shares of common stock. after conducting a due diligence exercise. helion has decided to invest rs 5.0 croree in mayur...
The profit of mahesh and company for the last 5 years were 2005_35000, 2006_30, 000,2007_27500, 2008_25000, 2009_20000.The capital employed in the form is 500,000.you are required to calculate the goodwill at 3 years purchase of super profits. The normal rate of return on capital employed is 5%
The future value of ASSET values...is an extreme concern for auditors... We always need to assess whether the entity will recieve the expected benefit in the future as the Balance Sheet valuation presents. Discuss the importance of the Allowance for Doubtful Account valuation for Accounts Recievable and the Impairment process for Goodwill pertaining to the complexities involved in attesting as to whether the Financial Statements are: a. Following GAAP b. Adequately Disclosing Data c. Consistency in the application of GAAP