Question regarding contingent payment

Assignment Help Accounting Basics
Reference no: EM13259333

The founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings:

a. the acquirer typically recognizes the payment as goodwill when the ccontingency is resolved and payment is given.

b. the acquirer typically recognizes the payment as goodwill when the contingency is resolved.

c. the acquirer typicallY includes the expected payments based on future earnings as goodwill at acquisition.

d. the acquirer typically amortizes contingencies over the applicable award period.

Reference no: EM13259333

Questions Cloud

What is the cost of transportation : North Carolina Terrycloth Company produces and stores towels in warehouses located in four cities. Ignoring the total shortage cost what is the cost of transportation?
Find the magnification of the microscope : A microscope uses an eyepiece with a focal length of 1.65 cm . Using a normal eye with a final image at infinity, What is the magnification of the microscope
What is the current market price : A $1,000 par value bond matures in 6 years, pays interest semi-annually, has a coupon rate of 5.2 and has a yield-to-maturity of 4.8 percent. What is the current market price? Round your answer to the nearest cent.
Determine the amount of net income for november : Determine the amount of net income for november, assuming that the owner made no additional investment or withdrawals during the month.
Question regarding contingent payment : The founders of an acquired company are granted a contingent payment for three years after the acquisition based on those years earnings:
The policy to be non-discriminatory : The National Association of State Tire Investigators, Engineers and Sellers (NASTIES) discovers certain evidence that suggests the federal government has been using its taxing powers to benefit wheel manufacturers.
What is the dollar amount of each semiannual coupon payment : A bond has a par value of $1000 and currently sells for $987. The bond's coupon rate is 7.9% and coupon payments are made semiannually. What is the dollar amount of each semiannual coupon payment? Round to the nearest dollar.
Find the input impedance of the transmission line : A 1(lambda) wavelength long line has parameter R=0.2 Ohm/m, G=0.002 mho/m, L=15 muH/m and C=2.31pF/m. The line is operated at a frequency f=2.5 GHz. It is terminated with a load impedance of 100 Ohms.
Distribution to the preferred stockholders : If $380,000 is to bedistributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Value added at alejandro store

In 2008, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000. Based on this information, what was the value adde..

  Problem regarding depreciation expense

During the year, accounts receivable decreased $7,000, merchandise inventory increased $5,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2007, operating activities:

  Prepare breaker coprs collection budget for first quarter

Management at Breaker Corp. Expects an accounts receivable collecion pattern of 80 percent in the month of sale. 15 percent in the month after sale, and 5 percent in the second month after sale. All sales are on credit and Brker Corp.

  Determine the payback period for the project

Determine whether or not the project should be undertaken using the net present value method.

  What is the impact on not eliminating intercompany payables

What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation? Is there an instance where either of these two practices wo..

  Provide the fund level entries in general journal

The Central Stores Fund of Cook City provides centralized management of purchasing, storage, and issue of supplies for the entire City. For the following summarized transactions and events for the year ended June 30, provide the fund level entries..

  Flexible budgeting problem

The cost formula for the maintenance department of Rainbow, Ltd., is $12,600 per month plus $4.50 per machine hour used by the production department.

  Finding out the tax consequences

Determine the tax consequences to Amber if the entity is organized as:

  Problem regarding lease or buy

Lease or buy: I can lease a building for $10,000 or buy for $800,000. The weighted average cost of capital is 12%. Which is cheaper buy or lease?

  Promotional and accounting services

During the current year JET Industries issued 5 million of its $1 par common shares to its underwriters for $25,000,000 less promotional and accounting services of $500,000 to effect the issue.

  Cost of goods manufacturing during the year

If the cost of goods manufactured during the year amounted to $1,330,000 and annual sales were $1,996,000, how much is the amount of gross profit for the year?

  Calculate the net cash provided by operating activities

October Corporation reported net income of $46,000 in 2012. Depreciation expense was $17,000 and unrealized holding losses on temporary investments (FV-NI) were $3,000. The following accounts changed as indicated in 2012:

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