Estimate the amount of goodwill that exists in a business

Assignment Help Accounting Basics
Reference no: EM132945722

Problem 1: In negotiations leading up to a sale agreement, which of these is a method that can be used to estimate the amount of goodwill that exists in a business?

A. Calculate the present value of the profit stream the purchasing company would acquire and deduct from it the fair value of the net assets gained
B. None of the above, i.e., all are methods of estimating the amount of goodwill that exists in a business in negotiations leading up to its sale
C. Calculate the discounted value of 'super-profits' which are the difference between the expected annual operating profit and normal profit
D. Calculate the difference between the price paid for the business and the fair value of the identifiable net assets acquired

Reference no: EM132945722

Questions Cloud

How you will improve your current profile : Describe these using SFIA terminology. How could you incorporate these into your Linkedln profile 'Summary' section
Discuss any three deficiencies that observations have : Discuss ANY THREE (3) deficiencies and the implications that the above observations have for the sales and the collection system of JY Miko Sdn. Bhd.
Complex mixed methods designs : Select one of the complex mixed methods designs (experimental, case study, participatory-social justice, evaluation). What is an example of a study you might co
Why does this job might appeal to someone : - Explain why would someone want to work as an H&M Part-time sales advisor? Why does this job might appeal to someone?
Estimate the amount of goodwill that exists in a business : In negotiations leading up to a sale agreement, which of these is a method that can be used to estimate the amount of goodwill that exists in a business?
Describe an overall strategy : Describe an overall strategy for the best way to incorporate vendor specific platforms and solutions into a service-based solution. In your analysis, include co
Which is not expected to have the potential to be affected : Which is not expected to have the potential to be affected by the new leasing approach under AASB 16? Regulatory capital requirements
Calculate depreciation for each year of the machine : Calculate depreciation for each year of the machine's estimated useful life under each of the Double-declining-balance methods
Beginning data collection for research : What you are looking forward to related to your data collection? What are you feeling the most apprehensive about data collection in research?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd