How much is the goodwill/gain on bargain purchase?

Q: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: The possible answers for option D are:Cost of Goods SoldDepreciation ExpenseEarned RevenueIncome Tax…

A: Step1:The likely income statement account that will be used to adjust unearned revenue (balance…

Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…

A: Introduction Goodwill is considered as an intangible assets that is linked with purchasing of one…

Q: A seller recognizes the amount of returns from right to return sales as a/an ________. Group of…

A: The question is asking about how a seller recognizes the amount of returns from right to return…

Q: Problem #4 Assuming the following transaction details for an acquisition, calculate the amount of…

A: Share value=Number of share×Per share price=45,500,000×$12.30=$559,650,000

Q: What are the differences between the cost and sales comparison approaches to appraising property?

A: If the cost approach is used, the appraiser set up an value for the location on which the…

Q: What is the meaning of economic value added (EVA)? What does it measure? Why is it important?

A: Economic value added ("EVA") measures a company's financial performance based on the excess wealth…

Q: What Is Goodwill And How Is It Accounted For?

A: Definition:   Goodwill: Goodwill is a good reputation developed by a company over the years. This is…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: What is the transaction price? What additional factorsrelated to the transaction price must be…

A: The transaction price is an amount that is received by the company from the transfer of goods or…

Q: When are the original cost and current book value are relevant?

A: Orginal cost is the cost paid to acquire the assets  Whereas the current book value is the value of…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: What is an acquisition differential and where does it appear in the balance sheet?

A: INTRODUCTION: A balance sheet is a financial statement that shows the assets and liabilities of a…

Q: What is a capitalization rate? What are the different ways of arriving at this rate for an…

A: Capitalization rate: Capitalization rate is the projected rate of return percentage that a property…

Q: What is the purpose of the valuation allowance?

A: purpose of the valuation allowance are as follows

Q: Is goodwill a long-lived asset?

A: Goodwill is known as asset that includes company image. It is an intangible assets which do not…

Q: Inventory, May 1 $ 156,000 Purchases (gross) 663,700 Freight-in 31,500 Sales revenue 1,061,800 Sales…

A: Formula: Net purchases = Gross purchases - Purchase discounts + freight in

Q: Are donation of goods considered an expense or cost of sale on statement of profit and loss or other…

A: Donation is a part of voluntary activity. It is not part of business consideration. Anything given…

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: What is the preferred order of reconciliation? cost, sales, income O income, cost, sales sales,…

A: Income is defines as total costs of the project deducted from total sales from the project.

Q: What amount of goodwill will be reported?

A: Consolidated balance sheet The financial position of a combination of two companies is represented…

Q: On January 1, 2021, ABC Co. traded in an old equipment with carrying amount of P,1680,000 for a new…

A: In exchange for the asset, the cost of the new asset will be the carrying the value of the old asset…

Q: What is meant by subjective discretionary income?How does it affect purchases?

A: Consumer is dealing with different types of income and expenses. All these would be considered on…

Q: Compute the goodwil (gain on bargain purchase)

A: Goodwill refers to the extra amount of consideration paid over the fair value of the net assets of…

Q: The following information is available from the most recent financial statements of the Attaché…

A: Debt to asset ratio = Total liabilities/Total assets x 100

Q: Why is an asset similar to an expense?

A: Asset  Any resource that will benefit a company, later on, is referred to as an asset. For instance,…

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: What is a repurchase agreement (product financing)arrangement? How should a product repurchase…

A:

Q: How much is the profit attributable to Owner's of the parent and NCI, respectively?

A: Profit attributable to the non controlling interest is the amount of profit over which the parent…

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: How much is the goodwill (gain on bargain ourchase)?

A: Calculation of Net Assets - Fair value: = Total Assets - Goodwill - Liabilities = P4,000,000 -…

Q: Which of the following is an economic motivation for an acquisition? Using a cash surplus. b.…

A: When there is cash surplus and there is a means to park such surplus then acquisition is one option.…

Q: What is another way of saying "Interest earned on interest"?

A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…

Q: What is goodwill, and what are the unique aspects of accounting

A: Goodwill is intangible, intrinsic to the company and cannot be sold separately from the business as…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.