User Account

All Pages

How much should it be capitalized for immediately

Assignment Help Accounting Basics
Reference no: EM133137800

Question - Company A agrees to pay Company B a one-time payment 2 years from now equaling 10% of their EBITDA if it exceeds or meets $10.0M and nothing if does not exceed $10.0M. Assume the following probabilities for potential outcomes:

EBITDA ($M)

Probability

<10

25%

12

30%

15

40%

17

5%

20

0%

If we assume that a scenarios approach with a single discount rate of 7% is used in valuing the contingent consideration, how much should it be capitalized for immediately subsequent to the acquisition?

A) $0

B) $912,743

C) $976,636

D) $1,045,000

E) $5,590,008

Reference no: EM133137800

Questions Cloud

History of holocaust : Consider the public objections to Aktion T4. Why is this one of few instances of German objections to Nazi actions? How did the public outcry impact Aktion T4
Example of a communication issue : Workplace communication can be a huge challenge. The ability to communicate and it in an effective manner is a critical competency that individuals should posse
What is the maximum hourly rate bid you : If $10,500 of the Technology Support cost referenced above were fixed and could not be eliminated. What is the maximum hourly rate bid you
Assignment on strategy and planning : book Judge, Timothy and Kammeyer-Mueller, John D. Staffing Organizations, 10th Edition. McGraw-Hill.
How much should it be capitalized for immediately : If we assume that a scenarios approach with a single discount rate of 7% is used in valuing the contingent consideration, how much should it be capitalized
Compute its cash flow : Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000, Compute its cash flow
Determine toko variable cost per copy : Toko made 3,400 copies and paid a total of $260 in rent in May and in June they paid $320 for 4,400 copies. Determine Toko's variable cost per copy
Maintain chromosome structure : Which nonhistone protein helps to maintain chromosome structure? What are 3 reasons to explain genetic variations in Meiosis?
Determine each partner share given a first-year net income : Ramer and Knox began a partnership by Investing $67,000 and $97,000, respectively. Determine each partner share given a first-year net income

Reviews

Write a Review

Accounting Basics Questions & Answers

  What would be the opportunity cost of each unit

Xenon Corp. produces a single product. What would be the opportunity cost of each unit delivered to the overseas customer

  What benefits can come from company using choice you suggest

First Company fishes Firth River and prepares Frozen fish product. Explain your reasoning and what benefits can come from companies using choice you suggest.

  Prepare journal entries to record the redemption of the old

Prepare journal entries to record the redemption of the old issue and the sale of the new issue

  Why do think moana company has to have a good business

Do you think, Moana company has a good working environment for the staff? Support your answer with reasons from the abstract.???

  What is tara basis for the land she received

Butterfield Corporation has a current E&P of $50,000 and a deficit in accumulated E&P of $40,000. What is Tara basis for the land she received

  What potential applications of artificial intelligence

What skills should students and CPAs in practice be developing now to stay competitive? What potential applications of artificial intelligence (AI)

  What is the book value of the loan after four years

Madeleine has assumed an investment life of 4 years, straight-line depreciation of 8 years, What is the book value of the loan after 4 years

  What is Woolard total depreciation deduction for the year

Asset Placed In Service Basis Office furniture (used) March 20 $1,183,000. If Woolard elects $50,000 of §179, what is Woolard's total depreciation deduction

  What is the expected cost of denim purchases in July

Mackinac Inc. produces denim backpacks. The production budget for the next four months is: July 5,800 units, What is expected cost of denim purchases in July

  Compute the avoidable interest on this project

The weighted-average amount of accumulated expenditures was $5,760,000. Compute the avoidable interest on this project

  Prepare a depreciation schedule for alternative methods

Tails Corporation purchased and installed electronic payment equipment. Prepare a depreciation schedule for each of the alternative methods.

  End of the pay period in which the overtime

Lidle Company needs time to calculate employees' overtime payments by the end of the pay period in which the overtime is worked. Can it pay the overtime payments with the following periods paycheck?

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