BUSINESS COLLEGE

On December 31, it was estimated that goodwill of $51,500 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $115,200 on April 1.a. Journalize the adjusting entry on December 31 for the impaired goodwill
b. Journalize the adjusting entry on December 31 for the amortization of the paten

Answers

Answer 1
Answer:

Answer:

a. The journal entries for the impaired goodwill as at Dec 31 would be:

Debit Impairment expense/charge $51,500

Credit Goodwill/Allowance for impairment $51,500

(To recognize impairment expense on goodwill)

b. Journal entries for the amortization of the patent as at Dec 31 would be:

Debit Amortization expense $9,600 [$115,200/12]

Credit Accumulated amortization $9,600

(To recognize amortization expense on patent)

Explanation:

A goodwill is impaired when its carrying value exceeds its fair value. The impairment test is carried out annually and the difference by which the carrying value of the goodwill exceeds the fair value is charged to the profit or loss account as impairment expense. The impairment reduces the goodwill to its fair value.

Goodwill belongs to a class of intangible asset and it arises essentially as a result of business combination. A business combination occurs when a company acquires another company.

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Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $64,900 $405,000 Cost of goods sold 44,000 300,000 Selling and administrative expenses 14,000 75,000 Interest expense 650 1,800 Other income (expense) (70 ) (380 ) Income tax expense 1,300 6,500 Net income $ 4,880 $ 21,320 Balance Sheet Data (End of Year) Current assets $16,000 $45,000 Noncurrent assets 25,000 120,000 Total assets $41,000 $165,000 Current liabilities $10,000 $54,000 Long-term debt 16,800 43,000 Total stockholders’ equity 14,200 68,000 Total liabilities and stockholders’ equity $41,000 $165,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders’ equity 12,500 64,000 Current liabilities 10,000 54,000 Total liabilities 30,500 98,000 Other Data Average net accounts receivable $7,400 $3,800 Average inventory 6,800 32,800 Net cash provided by operating activities 5,500 25,500 Capital expenditures 1,600 11,500 Dividends 450 3,500 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)Ratio TargetWal-Mart(1) Current ratio Enter a number:1 Enter a number:1(2) Accounts receivable turnover Enter a numbertimes Enter a numbertimes(3) Average collection period Enter a numberdays Enter a numberdays(4) Inventory turnover Enter a numbertimes Enter a numbertimes(5) Days in inventory Enter a numberdays Enter a numberdays(6) Profit margin Enter percentages% Enter percentages%(7) Asset turnover Enter a numbertimes Enter a numbertimes(8) Return on assets Enter percentages% Enter percentages%(9) Return on common stockholders’ equity Enter percentages% Enter percentages%(10) Debt to assets ratio Enter percentages% Enter percentages%(11) Times interest earned Enter a numbertimes Enter a numbertimes(12) Free cash flow
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One of Carl's department employees was severely injured on the job. Carl has called in psychological counselors to talk to the other employees and scheduled a series of safety trainings for the department to be completed by the end of the week. He has also asked the HR personnel to talk to the department about the disability insurance that the company offers and make sure that his employees know what is available. Carl is using ________ to help cope with the stress caused by his employee's injury.A) demandsB) action researchC) resourcesD) innovationE) appreciative inquiry
"If the previous chart measures CaliMart’s revenues in millions of dollars, how much money did CaliMart make in 2005"

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales-$150,000, cost of goods sold-$90,000, depreciation expense-$45,000, long-term capital gains -$15,000, qualified dividends-$6,000, and municipal bond interest-$3,000. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? a. ($15,000).
b. $6,000.
c. $9,000.
d. $9,000.
e. $15,000.
f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Answers

Answer:

f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Explanation:

Note: Guaranteed payments have no effect on Kim's outside basis.

Bright Line LLC will be reporting on page 1 of Form 1065, an ordinary loss of $15,000 ($150000 - $90000 - $45000 - $30000)

1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.

with financial calculator You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 4% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent.

Answers

Answer:

FV= $6,308.12

Explanation:

Giving the following information:

Semiannual deposit= $1,000

Number of periods= 6

Interest rate= 4%= 0.04= 0.04/2= 0.02

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= semiannual deposit

FV= {1,000*[(1.02^6) - 1]} / 0.02

FV= $6,308.12

In a financial calculator:

Function: CMPD

Set: End

n= 6

i= 2

PV= 0

PMT= 1,000

FV= solve= 6,308.120963

What additional regulatory measures do some state authorities demand if state funds are allocated to other government or nonprofit organizations?A.
state government officials demand that the SEC should look into the financial dealings of all these organizations
B.
state government officials recruit auditors to review the financial records
C.
state government officials themselves audit these organizations
D.
state government officials review the audit performed by CPA firms for such organizations

Answers

The correct option is D. state government officials review the audit performed by CPA firms for such organizations

The following information should be considered:

  • The state government officials should reviews the audit that should be performed by CPA firms for the organization.
  • And it should be an extra regulatory measure for state authorities demand in the case when the state funds are distributed to the government or non-government organization.

Learn more: brainly.com/question/16911495

This is op's alt account its D

A ceiling on interest rates is likely to lead to a. an increase in lending activity. b. more rapid capital formation by business. c. increases in hiring of labor. d. a shortage of loanable funds.

Answers

Answer:

a. an increase in lending activity.

Explanation:

Interest rate caps (ceilings) are a normative in adjustable-rate mortgage agreements. They define the maximum interest rate permitted in the loan period.

Since they evidently benefit the borrowers (they will never have an exorbitant interest rate), that gives them the incentive to borrow. On the other hand, banks become more secure that the borrowers will not default the loan (when the interest rate becomes high), so they get the incentive to lend.

You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at high temperatures and with abrasive material flowing through​ it) must be replaced every year. The replacement and downtime cost in the first year is ​$175 comma 000175,000. This cost is expected to increase due to inflation at a rate of 77​% per year for sixsix years​ (i.e. until the EOY 77​), at which time this particular heat exchanger will no longer be needed. If the​ company's cost of capital is 1515​% per​ year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be​ eliminated?

Answers

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

(1-(1+g)^(n)* (1+r)^(-n) )/(r - g)  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

The following information is available for Elliot Company. January 1, 2013 2013 December 31, 2013
Raw materials inventory $26,000 $30,000
Work in process inventory 13,500 22,200
Finished goods inventory 30,000 21,000
Materials purchased $170,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales 800,00

Required:
Compute cost of goods manufactured $____________________

Answers

Answer:

The cost of goods manufactured is $557,300

Explanation:

In order to calculate the cost of goods manufactured we would have to make the following calculation:

cost of goods manufactured=Work in process inventory 1/1+Total manufacturing costs-Work in process 12/31

Work in process inventory 1/1)= $13,500

Total manufacturing costs=Direct materials used+Direct labor+Manufacturing overhead

Total manufacturing costs=166000+220000+180000=$566,000  

Work in process 12/31=$22,200

Cost of goods manufactured=$13,500+$566,000  -$22,200

Cost of goods manufactured=$557,300

The cost of goods manufactured is $557,300
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