Delta Ware Corp. purchased 100% of Beta Logic Inc. for $30 million. Beta Logic's net assets had a book value of $20 million. The only difference between book and fair value was customer relationships, which were worth $6 million more than their book value.
Q: Calculate this account requirement
A: Step 1: Definition of Key TermsDebt-to-Equity Ratio: This financial ratio measures a company's…
Q: 4 POINTS
A: Concept of Sales:Sales refer to the total revenue generated by a company through the sale of goods…
Q: Given the solution and accounting question
A: Step 1: Definition of Total Manufacturing CostsTotal manufacturing costs refer to the total…
Q: what is the new degree of operating leverage
A: 1: Compute the Degree of Operating Leverage (DOL)The formula for DOL is:DOL = Total Operating Cash…
Q: Isla Innovations purchased a patent on 1 August 2020 for $360,000. The economic benefits were…
A: Explanation of Patent: A patent is an intangible asset that grants the owner exclusive legal rights…
Q: Three years after the intercompany equipment sale
A: Concept of Net Book Value:The net book value of an asset is its original cost minus accumulated…
Q: Provide correct answer general accounting question
A: Step 1: Define Debt-to-Equity RatioThe Debt-to-Equity Ratio is a financial metric that compares a…
Q: Please provide problem with accounting
A: Step 1: Definition of Percentage ChangePercentage Change: It is a financial metric used to measure…
Q: What was the average collection period?
A: Explanation of Average Collection Period: The average collection period, also known as days sales…
Q: You have reviewed the utility bills for your company. You have determined that the highest and…
A: Explanation of Fixed Cost:Fixed cost refers to a business expense that remains constant regardless…
Q: Cost of good sold. find out please
A: Calculation of Cost of Goods Sold (COGS)COGS = Beginning Inventory + Net Cost of Purchases − Ending…
Q: Correct Answer
A: Concept of Standard CostingStandard costing is a cost accounting method where businesses set…
Q: Given step by step explanation general accounting question
A: Step 1: Define Manufacturing CostsManufacturing Costs include Direct Materials, Direct Labor, and…
Q: Accounting MCQ
A: The correct answer is:c) Classify as liability if redemption is required Explanation:Under…
Q: please post this question in Account tutors feed
A: Step 1: Definition of Market-to-Book Ratio of EquityThe market-to-book ratio of equity compares the…
Q: ??
A: Given:Net Profit (Variable Costing) = $92,000 Net Profit (Absorption Costing) = $78,800 Fixed…
Q: e-Mart has net sales on account of $900,000 and an average net accounts receivable of $450,000.
A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…
Q: Provide correct option general accounting question
A: Step 1: Definition of Cost AllocationCost Allocation is the process of assigning indirect costs,…
Q: I need this question answer financial accounting
A: Step 1: Define Capital Gains YieldCapital Gains Yield refers to the percentage increase in the value…
Q: Ans
A: Concept of Equivalent Units of Production (EUP)Equivalent Units of Production (EUP) is a cost…
Q: Sub general accounting
A: Step 1: Definition of Operating LeverageOperating Leverage: It measures how sensitive a company's…
Q: Deltacorp Manufacturing is developing direct labor standards. The basic direct labor wage rate is…
A: Explanation of Standard Rate per Direct Labor-Hour: The standard rate per direct labor-hour…
Q: Q1: Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year):…
A: Solution to Wyatt Company's Intangible Assets Accounting 1. Acquisition Cost of Each Intangible…
Q: Can you help me? With this question answer general accounting
A: Step 1: Define RatiosMarket-to-Book Ratio: Measures how much investors are willing to pay for each…
Q: 5 PTS
A: Step 1: Identify Given InformationTotal number of shares sold = 520Total proceeds from selling the…
Q: What is the profit margin on these accounting question?
A: Step 1: Analysis of information givenNet Income = $200,000Sales = $2,000,000We need to calculate the…
Q: account
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that…
Q: A firm has a profit margin of 4.5% and an equity multiplier of 2.8. Its sales are $550 million, and…
A: To calculate the Return on Equity (ROE) for the firm, we can use the DuPont analysis formula, which…
Q: What is the value of valid claims if each average $180?
A: Step 1: Introduction to warrantyWarranty expense refers to the estimated costs that could be…
Q: Check all data carefully and provide solution for this general account questions
A: Step 1: Definition of Gross ProfitGross profit is the difference between sales revenue and the cost…
Q: What is the cost of goods sold?
A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) represents the direct costs…
Q: Financial accounting
A: Step 1: Define Net IncomeNet income is the profit earned by a company after deducting all related…
Q: What is the cost of goods available for sale?
A: Beginning Inventory: 120 units × $48/unit = $5,760Purchases: 200 units × $48/unit = $9,600…
Q: I need help with this problem and accounting question
A: Step 1: Definition of Capital Gains Capital gains refer to the profit earned from the sale of an…
Q: Blaze Corporation's liability account balances at August 31, 2023, included an 8% note payable. The…
A: Explanation of Note Payable:A note payable is a formal written agreement in which a company borrows…
Q: what was the net income for year 2?
A: Step 1: Definition of Net IncomeNet income represents the profit a business earns after deducting…
Q: Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show…
A: Step 1: Definition of Gross Profit MethodThe gross profit method is used to estimate inventory…
Q: Metro Corp. acquires a patent from Maxwell Co. in exchange for 3,000 shares of Metro Corp.'s $5 par…
A: Explanation of Patent: A patent is an intangible asset that provides exclusive rights to the holder…
Q: Accounting
A: Step 1: Definition of Shareholders' Equity and Net Working CapitalShareholders' Equity: It…
Q: A car dealership requires that salespeople generate a minimum selling cost of 6.5% to justify their…
A: Step 1: Define the Given ValuesWe are aware of the following information:The annual salary of a…
Q: I don't need ai answer general accounting question
A: Step 1: Definition of Overapplied and Underapplied OverheadOverapplied Overhead occurs when the…
Q: Several years ago, a parent company acquired all of the outstanding common stock of its subsidiary…
A: Explanation of Equity Investment Account: The equity investment account represents the parent…
Q: can you help me with this General accounting question
A: Step 1: Define Accounts Receivable Period & Average Investment in Accounts ReceivableAccounts…
Q: Cash paid at maturity of the note
A: The total cash paid at maturity is $125,400, calculated using simple interest:…
Q: Solve this Accounting problem
A: Explanation of Net Income (Earnings After Tax): Net income represents the total profit a company has…
Q: Answer this Question
A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…
Q: Given step by step explanation general accounting question
A: Step 1: Define Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the time it takes…
Q: Provide correct option general accounting question
A: Step 1: Definition of Cost AllocationCost Allocation is the process of assigning indirect costs to…
Q: Provide correct option general accounting question
A: Step 1: Definition of LiabilitiesLiabilities are financial obligations or debts that a company owes…
Q: Account Question answer wanted.
A: Step 1: Definition of GoodwillGoodwill is an intangible asset that arises when a company acquires…
Step by step
Solved in 2 steps
- Frank Corp. owned a 90% interest in Roberts Co. Roberts frequently made sales of inventory to Frank. The sales, which include a markup over cost of 25%, were $400,000 in 20 xx1. On December 31,20 xx1, Frank still owned $120,000 of the goods. Net income for Roberts was $900,000 during 20 xx1. Assuming there are no other intercompany asset transfers, what was the net income attributable to the noncontrolling interest for 20 xx1 ?King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the financial data of this new subsidiary. King's Road paid a total of $1,060,000 for Oxford, which has the following accounts: Fair Value Таx Basis $ 139,000 228,000 103,000 295,750 298,750 (248,000) $ 139,000 228,000 103,000 239,000 248,000 (248,000) Accounts receivable Inventory Land Buildings Equipment Liabilities Required: a. What amount of deferred tax liability arises in the acquisition? b. What amounts will be used to consolidate Oxford with King's Road at the date of acquisition? c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King's Road recognize? Assume a 21 percent effective tax rate.Frankie Corporation purchased 100% of Blake Company for P600,000. At that date, Blake Company had the following book values and market values: Book Value Market Value Cash and receivables 60,000 60,000 Inventory 180,000 230,000 Plant Assets (net) 375,000 475,000 Current liabilities (95,000) (95,000) Long-term debt (215,000) (215,000) Common stock (25,000) Retained earnings (280,000) What is the total purchase differential? Select one: a. P205,000 b. P145,000 c. P295,000 d. P-0-
- King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the financial data of this new subsidiary. King's Road paid a total of $895,000 for Oxford, which has the following accounts: Fair Value $ 183,000 142,000 104,000 Tax Basis $ 183,000 142,000 104,000 Accounts receivable Inventory Land Buildings Equipment 234,000 235,000 (245,000) 190,000 184,000 (245,000) Liabilities Required: a. What amount of deferred tax liability arises in the acquisition? b. What amounts will be used to consolidate Oxford with King's Road at the date of acquisition? c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King's Road recognize? Assume a 21 percent effective tax rate.Principal, Inc. is acquiring Secondary Companies for $29 million in cash. Principal has 2.5 million shares of stock outstanding at a market price of $30 a share. Secondary has 1.6 million shares of stock outstanding at a market price of $15 a share. Neither firm has any debt. The synergy gains of the acquisition is $4.5 million. What is the NPV of the acquisition?Veghie Co is acquiring Fruit Inc for $25,250 in cash. Veggie Co has 2350 shares outstanding at a market price per share of $39. Fruits Inc 1500 shares outstanding at $16 per share. Neither firm has outstanding debt. The incremental value (synergy) of the acquisition is $2300. What is the value of Veggie Co after acquisition? A) 92,700 B) 88,950 C) 56,650 D) 89,150 E) 73,750
- Pines Corporation has a branch in Manila and 70%-owned subsidiary, Choco Hills, Inc. in Davao. The following data shows Pines Corporation’s sales transactions during the year: * Pines Corporation billed the Manila branch P1,500,000 for merchandise shipped to the latter at a mark-up 50% above acquisition cost. The branch stored the merchandise and did not operate during the year. * Sold merchandise to unrelated parties at a gain of P800,000 * Sold merchandise to Darrel Asuncion, Pines Corporation’s controlling at a gain of P100,000 *Sold various merchandise to Choco Hills, Inc. at a gain of P200,000. Compute the total income of Pines Corporation subject to income taxABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value = P500,000) and an equipment (book value = P300,000). They are 75% depreciated. The building has the following relevant information. Square Cost to Total Cost to Component Footage Reproduce Reproduce Foundation 100.00 P 1,000.00 P 100,000.00 Floor 3,000.00 500.00 1,500,000.00 Walls 900.00 300.00 270,000.00 Ceiling 1,500.00 400.00 600,000.00 Water, electrical and heating system 1,000.00 700.00 700,000.00 P3,170,000.00 Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity?Meryll Company is negotiating to acquire the net assets LeMans Company. Under the plan, Meryll is willing to pay for goodwill computed by capitalizing at 25% LeMans’ average earnings in excess of the 10% normal return based on appraised value of net assets. This is the same level of income experienced by companies similar to LeMans line of business. LeMans' income for the past three years averaged P3,000,000. LeMans’ assets and liabilities are Book Value Appraised ValueAssets excluding goodwill P30,000,000 P39,000,000Liabilities 10,500,000 10,500,000
- AnsBayside Fishing Supply Co.is acquiring Fishing Lure Specialists for $25,250 in cash. Bayside Fishing Supply Co. has 2,350 shares outstanding at a market price per share of $39. Fishing Lure Specialists has 1,500 shares outstanding at $16 per share. Neither firm has outstanding debt. The incremental value (synergy) of the acquisition is $2,300. What is the value of Bayside Fishing Supply Co. after the acquisition? A $89,150 B $56,650 C $88,950 D $92,700 E) $73,750Lion Bank had $150 million in assets and $60 million in expenses before the acquisition of Sell Bank, which had assets of $50 million and expenses of $10 million. After the merger, the bank had $180 million in assets and $60 million in costs (Round to three decimal places). A. What is the cost percentage before the acquisition? B. What is the cost percentage after the acquisition? C. Did this acquisition generate economies of scale or economies of scope?