User Account

All Pages

What is the amount of goodwill from parent investment

Assignment Help Accounting Basics
Reference no: EM131900288

Question - On January 2, 2011, Parent Company paid $1,200,000 for 100% of the voting common stock of Sub Corp. At the time of the investment, Sub Corp had net assets with a book value of $800,000 and fair value of $1,000,000. The fair value increase is attributable to the building and will be amortized over 10 years. During 2011, Sub earned net income of $100,000 and paid dividends of $20,000. Any excess cost over fair value is attributable to goodwill with an indefinite life. What is the amount of goodwill from Parent's investment in Sub?

$200,000

$400,000

$1,200,000

$20,000

Reference no: EM131900288

Questions Cloud

Implement an anomaly detection algorithm : Implement an anomaly detection algorithm to detect anomalous behavior in server computers. The features measure the throughput
Various greek and roman forms of government : Compare and contrast the development of the various Greek and Roman forms of government, demonstrating their impact on modern western forms of government.
How would the payment differ if you paid interest only : How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Calculate the present value of future earnings : In order to have effective executive leadership in innovation, senior management MUST be involved in day-to-day project management.
What is the amount of goodwill from parent investment : Any excess cost over fair value is attributable to goodwill with an indefinite life. What is the amount of goodwill from Parent's investment in Sub
Compute the cycle time using the production lot size model : Wilson Publishing Company produces books for the retail mark et. Demand for a current book is expected to occur at a constant annual rate of 7200 copies.
What is a product line extension : What are two of the four different types of consumer product classifications? Define those two types of consumer goods.
Choose 4 of the 6 wonders of the ancient world : Choose 4 of the 6 Wonders of the Ancient World(excluding the Great Pyramid of Egypt which we covered in class)
What is the materials price variance : A firm has established standards as follows:? Direct material 3 pounds @ $4/pound = $12 per unit. What is the materials price variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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