User Account

All Pages

How much is the goodwill after business combination

Assignment Help Accounting Basics
Reference no: EM132836654

On January 1, 20x1, Marvee acquired the net assets of Mae by paying cash of $200,000 and issuance of 20,000 shares with market value of $100. On this date, the fair value of assets and liabilities amounted to $2,500,000 and $400,000, respectively.

  • Marvee has estimated a restructuring provision of $250,000 representing the exit cost of Mae's activities, the cost of terminating the employees of Mae. Marvee also renting a building to Mae under an operating lease. Marvee has determined that the term of the operating lease on the building compared to the market contract terms is favorable and its fair value is estimated at $50,000.

Problem 1: Assuming that Marvee determined the contract term of the operating lease is unfavorable, how much is the goodwill after business combination?

Reference no: EM132836654

Questions Cloud

Spend an extended time on a particular issue : Spend an extended time on a particular issue in Critical Thinking - explore this region where critical thinking can break down for us; that is philosophically
Focuses on traditional software processing models : This discussion forum focuses on traditional software processing models used by developers to create a successful system.
Describe the five alternatives to job specialization : Describe the five alternatives to job specialization. What is the advantage of each, as compared to specialization?
Create a memo introducing yourself and your business plan : Create a memo introducing yourself and your business plan to a prospective resource. Be sure to use the following steps: Introduce yourself and your venture.
How much is the goodwill after business combination : Assuming that Marvee determined the contract term of the operating lease is unfavorable, how much is the goodwill after business combination?
Explain the main goals of organizational behaviour : Describe and explain the main goals of organizational behaviour. Apply the main goals to an organization experiencing a turnover problem.
Give the entries for gusher petroleum : Give the entries. Gusher Petroleum obtained a lease on March 1, 2015. Being short of funds, Gusher Petroleum did not begin drilling operations
Cyber-attack can cause economic damage : There are a variety of ways that a cyber-attack can cause economic damage. In many cases, attackers try to "penetrate" systems in order to steal technology
Discuss what the reformers hoped to accomplish : This "age of improvement" held both a collective (public) component and an individual (private) component. That is, the impulse for reform aimed at improving.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Insurance expires at the rate

The ledger of Witzling, Inc. on March 31, 2012, includes the following selected accounts before adjusting entries.

  Determine the accuracy of a business record keeping

For each of the following errors, indicate whether the error would cause the accounting equation to be out of balance, and if so, indicate how it would be out.

  Journalize all transactions for jo jo music

Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)

  Compute the current break-even sales

Currently, the unit selling price of a product is $300, the unit variable price cost is $225, Compute the current break-even sales (units)

  Wainwright corporation had the following activities in 2010

Purchase of treasury stock $72,000 6. Purchase of available-for-sale securities $59,000 Compute the amount Wainwright should report as net cash provided (used) by investing activities in its statement of cash flows.

  Compute the depreciation charge under sum-of-the-years-digit

Compute the depreciation charge in 2020 under each of the Double declining balance methods. Bigfoot Java, a company that sells coffee, purchased equipment

  Association between home attendance and wins

a) Examine a scatterplot for the two variables and test the conditions for regression. b) Do you think there is a linear association between Home Attendance and Wins? Explain.

  What recommendations would you make to eva green

scuss some limitations of Sunny Power's proposed system and give one specific example of how it can be improved.

  Prepare the journal entry to record this purchase

Select Apparel purchased 90 new shirts and recorded a total cost of $2,258 determined as follows: Prepare the journal entry to record this purchase

  What are the benefits of audit planning

What are the benefits of audit planning? What are the auditor's responsibilities in relation to fraud

  Make necessary journal entries in books of Kangaroo Ltd

Make necessary journal entries in books of Kangaroo Ltd following the requirements of AASB121, The Effects of Changes in Foreign Exchange Rates

  Evaluate how many kilograms of direct material purchased

Assume for a firm that budgeted product, If 30 June inventory of materials was 5000 kg, how many kilograms of direct material should be purchased during July?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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