Solution-What should be recorded as the fair value

What should be recorded as the fair value

Assignment Help Accounting Basics

Reference no: EM132084040

Question - JMR Inc. just purchased 85% of ASJ Ltd. for $840,000 cash. All of ASJ's net identifiable assets of $625,000 are equal to their fair values except for the following:

i) Machinery and equipment with a book value of $625,000 and a fair value of $125,000 in excess of book value.

ii) ASJ has a patent, not currently on its books. The cash flows from the patent are expected to be $40,000 per year for the next 8 years, and JMR believes that 5% is an adequate discount rate.

JMR has determined that it will calculate any non-controlling interest based on its proportionate share of ASJ's fair value.

What should be recorded as the fair value of ASJ's assets acquired by JMR (rounded to the nearest thousand dollars)?

Reference no: EM132084040

Questions Cloud

What must beginning inventory have been : Aphrodite Corporation's income statement showed $78,000 in cost of goods sold for the year ending December 31, 2008. what must beginning inventory have been

Is stare decisis an inexorable command : "Stare decisis is not an inexorable command; rather it is a principle of policy and not a mechanical formula of adherence to the latest decision"?

Continuous review instead of periodic review policy : What would be the safety stock if Zay, Inc. used a continuous review instead of periodic review policy?

Create an info-graphic picture of your community : Create an info-graphic picture of your community to support your written analysis.

What should be recorded as the fair value : What should be recorded as the fair value of ASJ's assets acquired by JMR (rounded to the nearest thousand dollars)

Determine the company overhead rate : Determine the company's overhead rate. Calculate the costs of each job as of 31 March. Determine the ending balance of the Finish goods inventory account

Describing how each encourages critical thinking : Describing how each encourages critical thinking specific to your lesson. Be sure to rationalize the appropriateness of each strategy in regards

Create a six-page comic book to share : Following your research, create a six-page comic book to share with your school's administration and general education teachers.

Columns of the original table : A developer created a view of a 1GB table. The view displayed all of the columns of the original table but only half of the rows

User Account

All Pages

What should be recorded as the fair value

Reference no: EM132084040

Reference no: EM132084040

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT