Reference no: EM13698225
Herman Corporation common stock purchased by Fred, Inc. 60%
Cash paid for stock purchase $312,000
Book value of Herman's assets and liabilities $300,000
Fair value of noncontrolling interest $208,000
Herman patents (12-year remaining life) were undervalued by $90,000
Customer list acquisition date fair value $130,000
Life of customer list in years 10
Intra-entity transfers:
Original Transfer Ending
Cost to Price Balance at
Year Herman to Fred Transfer Price
2011 $80,000 $100,000 $20,000
2012 100,000 125,000 40,000
2013 90,000 120,000 30,000
2013 inventory transfers not paid for by Fred at year end 50%
Book value of land sold by Fred to Herman $15,000
Sale price of land sold by Fred to Herman $22,000
Face value of Fred's bonds purchased by Herman $20,000
Cash interest rate of bonds purchased by Herman 8%
Fred's book value of bond liability at repurchase date $21,386
Effective yield of bonds 6%
Herman's bond acquisition price based on effective rate of 10% $18,732
Herman's reported accounts for 2013:
Net income $25,000
Beginning retained earnings $300,000
Dividends paid $4,000
Common stock $100,000
|
Stock dividend applicable to the outstanding shares
: On March 15, My Corp. BOD declared a 2 percent stock dividend applicable to the outstanding shares of its $10 par value common stock, of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury
|
|
Any one time the following will be held
: A company plans to sell 12000 units in month 1 and 13000 units in month 2. Sales will increase by 1000 units each month after that. Production will be scheduled so that at any one time the following will be held
|
|
John is a young accountant at a local cpa firm
: John is a young accountant at a local CPA firm. He is wresling with a problem: tyring to decide whether to cover up a mistake made in not attaching an irrevocable election to a key client's recently sumitted tax return.
|
|
Which plan provides the best use of the farmers capital
: A farmer just purchased a tractor for which he had to borrow $20,000. The bank, using an 8% interest rate, offered a choice of three payment plans as shown below. The farmer’s Minimum Attractive Rate of Return (MARR) is 15%.
|
|
Herman corporation common stock purchased
: Herman Corporation common stock purchased by Fred, Inc. 60%
|
|
Theory of economic behavior on the actual mental processes
: Suppose that Joe enjoys and repeatedly does stupid things like getting heavily into debt and insulting police officers. Do these actions constitute systematic errors? If he gets what he wants each time, are his stupid actions even considered to be er..
|
|
Business operates under competitive conditions
: Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..
|
|
What single sum of money
: What single sum of money at t = 4 is equivalent to receiving $5,000 at t = 1, $5,800 at t = 2, $7,300 at t = 3, and $8,200 at t = 4 if money is compounded at a rate of 11.5% per time period?
|
|
Limitations of GDP
: Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the inco..
|