User Account

All Pages

What will h company record as the acquisition price

Assignment Help Accounting Basics
Reference no: EM133179756

Question - H Company acquires 100% of the voting stock of R Company on January 1, 2021 for P400,000 cash. A contingent payment of P16,500 will be paid on April 15, 2022 if Ron Company generates cash flows from operations of P27,000 or more next year. H Company estimates that there is a 20% probability that R Company will generate at least P27,000 next year and uses an interest rate of 5% to incorporate the time value of money. The fair value of P16,500 at 5%, using a probability weighted approach is P3,142. What will H Company record as the acquisition price on January 1, 2021?

Reference no: EM133179756

Questions Cloud

What challenges might you expect : What challenges might you expect if an organization felt it necessary to change its organizational structure?
Discuss at least three barriers to organisational change : Discuss four (4) styles of leadership and the impact each of the identified styles on organisational culture.
About estimating task duration : We are learned about estimating task duration. Of the 6 that were identified, which do you feel will provide the best estimates?
Describe tools used for collaboration and teamwork : Think of a company that you currently or previously worked for or one that you are familiar with, and describe the tools used for collaboration and teamwork
What will h company record as the acquisition price : The fair value of P16,500 at 5%, using a probability weighted approach is P3,142. What will H Company record as the acquisition price on January 1, 2021
Affordable Care and Patient Protection Act : How can all levels of healthcare workers help to reduce inequality and discrimination in the delivery of healthcare services?
Legal activity regarding twitter and web postings : eople such as Tiffany Dehen, Rep. Devin Nunes, and Meghan Murphy have taken a stand to complain about being bullied and mocked on Twitter.
Prepare journal entries to record the transactions : Selected transactions for Blossom Corporation during September 2018, its ?rst month in business, Prepare journal entries to record the transactions
Religious values in a changing healthcare marketplace : Question 1: Why has consolidation of the healthcare system not yielded the typical savings of increased scale?

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