Compute for the goodwill.

Q: Describe and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: Explain the impairment of goodwill, in general

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: Are joint cost allocations useful? If they are, for what purpose?

A: Definition: Joint cost: The total costs incurred prior to the split-off point where the joint…

Q: what is accounting for goodwill and what are its implications?

A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…

Q: Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease…

A: COST ALLOCATIONWhen items of cost are identifiable directly with some products or departments such…

Q: Explain difference between prime costs and conversion costs.

A: Prime cost: It is the cost which is incurred for manufacturing a product. It includes direct…

Q: 1. ANEMONE Company engaged your services to compute the goodwill in the purchase of another company…

A: Solution: Goodwill = Excess profit/ capitalization rate Average asset =  8,500,000 Normal earnings =…

Q: Sandhill Corporation makes a mechanical stuffed alligator. The following information is available…

A: Desired ROI is calculated by multiplying invested assets by ROI percentage. The desired ROI per…

Q: Year 2012 2013 2014 2015 60,000 15,000 45,000 6,000 90,000 17,000 67,500 8,500 30,000 7,500 22,500…

A: For every labor dollar spent, the approximate cost per meal  = Salary/Total meals served

Q: Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old…

A: Conversion costs means direct labour costs and manufacturing overhead costs. It means costs incurred…

Q: 1. A company enters into a contract with a customer to sell Products AA, Baba, and Kaka in exchange…

A: Transaction price of a contract will allocate in the ratio of observable standalone price of all…

Q: A project's terminal value is the ______.

A: A project's terminal value is the sum of the future values of the cash inflows compounded at the…

Q: Give a definition of "Goodwill". Give two examples.

A: The value that a person or company builds up over a time in the form of reputation with the aim to…

Q: Define goodwill impairments.

A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…

Q: Understand and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Assume that a transfer price of $162 has been established and that 37,500 units of materials are…

A:

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: What is goodwill and how is it measured?

A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: Define the term Fair Value Hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: What is a contra-asset? Give an example of one.

A:

Q: What is the meaning behind cost of acquisition? Please explain and provide an example.

A: By tracking the cost of acquisition, businesses can assess the profitability of their marketing…

Q: What is a joint cost? What is a separable cost?

A: Joint Cost: Joint cost is a cost accounting term, which is referred to common costs incurred in…

Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?

A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income…

Q: What is this cost allocation?

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What does the intrinsic value formula look like? Please explain the components of the formula.

A: Intrinsic value or the real value is the calculated value or anticipated value of a company’s stock…

Q: What is the carryover amount?

A: Introduction Capital losses may be defined as the decrease in the value of capital assets of the…

Q: Define goodwill in terms of ifrs

A: Goodwill is the difference between the amount paid by the investor company to acquire the voting…

Q: Producing Departments / Main Department Servicing Departments Department A Department B Department C…

A: Percentages of allocation

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

Q: How is the term ‘net realizable value’ defined as used in the acronym LCNRV?

A: Inventory: It implies the current asset that is presented on the balance sheet of the company and…

Q: How do you find full absorption cost

A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…

Q: Define residual value.

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: On June 30, 2020, when JDE Co's share was selling at P 65 per share, its capital accounts were as…

A: Working note: Computation of share dividend: Share dividend=Share capital×Rate of…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.