Reference no: EM132602222
Question 1. Which risk exposure a forward contract hedges against?
A. Economic exposure
B. Transaction exposure
C. Translation exposure
D. All above
Question 2. MET corporation acquired 80% of the voting shares of NLT company for $4,500,000. NLT's carrying value of net assets was $2,000,000 on the acquisition day. If NLT's earnings per share failed to reach the agreed level by the two parties in three years, NLT would return an amount of money back to MET. This amount of money had a present value of $500,000 on the acquisition day. The carrying values of NLT's assets and liabilities on the acquisition day were equal to their fair values except for the followings:
Fair value Inventory $30,000
Land 1,000,000
Book value $40,000
600,000
Goodwill reported for this acquisition under the entity theory is:
A. $3,235,000
B. $3,390,000
C. $2,610,000
D. $2,590,000
Question 3. Companies A and B entered into a joint operation on Jan 1, 20X1. On that day, A earned an interest of 30% from its contribution to the operation. On that day, which of the following statements is true?
A. A can recognize a gain or loss from its contribution to the extent of B's interest.
B. A can recognize a gain or loss from its contribution to the extent of its own interest.
C. A can recognize a gain or loss from its contribution depending on if the joint contract ?represents a commercial substance case.
D. A can recognize a gain or loss from its contribution which is equal to the difference ?between the FV and BV of the asset it contributed
|
What is the current stock price
: A call option with a 1 month to expiration currently sells for $0.70. A put option with the same expiration sells for $1.10.
|
|
Calculate acquisition analysis using partial goodwill method
: All assets are recorded at their fair values except for an item of buildings, which had a fair value of $500,000. Calculate acquisition analysis
|
|
Describe the three essentials of the tort of negligence
: Explain the various interests protected by tort law; Describe the three essentials of the tort of negligence; Describe the 'but for' test of causation;
|
|
What is the operation cash flow of year 2
: Demiralp, Inc., is planning to set up a new manufacturing plant in New York to produce auto tracking camera. The company bought some
|
|
What goodwill reported for the acquisition
: What Goodwill reported for the acquisition under the entity theory is? MET corporation acquired 80% of the voting shares of NLT company for $4,500,000.
|
|
Identify continuous improvement systems and processes
: Identify continuous improvement systems and processes for a business and develop a continuous improvement policy and two continuous improvement tools
|
|
Calculate the amount required to settle the invoice
: Sunglow Company received an invoice for $275,250 dated November 8, 2017 with payment terms 5/5, 1/20, n/45 for a truck-load of goods.
|
|
What is poe after-tax cost of providing the auto allowance
: Answer the following questions relating to this fringe benefit. What is Poe's after-tax cost of providing the auto allowance
|
|
Financial reporting depends on sound ethical behavior
: Effective financial reporting depends on sound ethical behavior. What is the accounting problem that the Linbarger Company faces?
|