Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
At the beginning of 2011, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired:
Plant and equipment (depreciable assets) ....... $150 millionPatent ..................... 40 millionGoodwill ..................... 100 millionThe plant and equipment are depreciated over a 10 year useful life on a straight line basis. There is no estimated residual value. The patent is estimated to have a 5 year useful life, no residual value, and is amortized using the straight line method.At the end of 2013, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined:
Plant and equipment:Undiscounted sum of future cash flows .......... $ 80 millionFair value ...................... 60 millionPatent:Undiscounted sum of future cash flows .......... $ 20 millionFair value ...................... 13 millionGoodwill:Fair value of Ellison Technology ............. $450 millionFair value of Ellison's net assets (excluding goodwill) ....... 390 millionBook value of Ellison's net assets (including goodwill) ..... 470 millionAfter first recording any impairment losses on plant and equipment and the patent.Required:1. Compute the book value of the plant and equipment and patent at the end of 2013.2. When should the plant and equipment and the patent be tested for impairment?3. When should goodwill be tested for impairment?4. Determine the amount of any impairment loss to be recorded, if any, for the three assets.
HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2009. What amount should HD report as income tax expense in its 2009 income statement?
explain why proponents of lifo argue that it provides a better match of revenue and expenses. in what situation would
in 2010 the bowwow company purchased 14038 units from its supplier at a cost of 11.09 per unit. bowwow sold 17756 units
uncle harry called you to let you know that he intends to sell his beautiful ski chalet in sun valley four years from
pampq company has provided you the following information. monthly fixed expenses are 5000 usd and variable expenses per
What amount related to the bonds will LHD report in its balance sheet at December 31, 2009 for bonds payable? What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31,2010?
in 2013 maria who files as a head of household reported regular taxable income of 115000. she itemized her deductions
cost flows and overhead applicationcleveland metals uses a job cost system and applies factory overhead to production
recall a trip to the bank. does the teller receiving the money for deposit take the money to bookkeeping and record the
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250.
during 2010 a company purchased a mine at a cost of 4116000. the company spent an additional 720000 getting the mine
Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd