Tyson & Co. values its goodwill at three years' purchase of the last four years' average profit. The recorded profits for the last four years were R.O 50,000, R.O 28,000, R.O 18,000, and R.O 14,000, respectively. Find out the value of goodwill.need answer

Tyson & Co. values its goodwill at three years' purchase of the last four years' average profit. The recorded profits for the last four years were R.O 50,000, R.O 28,000, R.O 18,000, and R.O 14,000, respectively. Find out the value of goodwill.need answer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

See similar textbooks

Related questions

Q: What effect will acceptance of the offer have on net income?

A: The question requires the determination of the effect on net income when additional orders will be…

Q: Please provide correct solution this financial accounting question

A: Step 1: Define Preferred DividendThe dividend paid to the preferred stockholders is called a…

Q: General accounting

A: Step 1: Define Cash CycleIn the context of finance and accounting, there are two kinds of cycles…

Q: In a certain standard costing system, the following results occurred last period: total labor…

A: To determine the number of direct labor hours used, we will use the given variance information.…

Q: Subject: general accounting

A: To calculate the portion of the payment applied to the principal, we need to first determine the…

Q: Please help me with this question general Accounting

A: Step 1: Define Average Accounts Payable BalanceAverage Accounts Payable Balance represents the…

Q: Compute the labour quantity variance

A: Explanation of Labor Quantity Variance: Labor quantity variance measures the difference between the…

Q: provide correct answer of this General accounting question

A: Given data: Revenue: $250,000 Operating Expenses: $150,000 Tax Rate: 15% on profit before…

Q: Contribution margin

A: Explanation of Contribution Margin:The contribution margin represents the amount of revenue…

Q: General Accounting Question

A: Step 1: Define Direct Material Price VarianceThe Direct Material Price Variance measures the…

Q: general accounting

A: Step 1: Definition of Applied OverheadApplied overhead refers to the estimated indirect costs…

Q: How much disposable income?

A: To calculate Samuel Stevens' disposable income, we need to subtract all the deductions from his…

Q: ?

A: Step 1:First, calculate the total current assets: Current ratio = Current assets / Current…

Q: Solution

A: QUESTION 1: When you need to comprehend the intricate interactions between several variables or…

Q: Hi expert please help this question

A: To calculate the after-tax income from the special project, follow these steps: 1. Determine the…

Q: Please provide answer this financial accounting question

A: Step 1: Define Expected Sales Return PercentageThe Expected Sales Return Percentage is calculated by…

Q: General Accounting Question need help

A: Here's a step-by-step breakdown to calculate the Direct Material Price Variance (DMPV): Step 1:…

Q: Can you please solve this financial accounting question?

A: To calculate the company's required return, we use the Capital Asset Pricing Model (CAPM)…

Q: Calculate the current price per share of the stock on these financial accounting question

A: To calculate the current price per share of the stock, we use the Dividend Discount Model (DDM) for…

Q: Mia Steel started the year with total assets of $325,000 and total liabilities of $174,000. During…

A: Step 1:First, calculate the beginning stockholders' equity: Beginning stockholders' equity = Total…

Q: Subject: financial accounting

A: Explanation of Return on Equity (ROE): This financial ratio measures how efficiently a company uses…

Q: None

A: Given data:Processing order = 23 minutesWaiting for copying to begin = 27 minutesCopying = 22…

Q: Answer this MCQ

A: Explanation of Net Income: This is the company's total earnings or profit calculated by subtracting…

Q: What is the book value per share and earning per share accounting

A: Step 1: Definition of Market Value RatiosMarket value ratios are financial metrics that help…

Q: Provide accounting question

A: To calculate the number of units that must be sold to achieve an operating income of $139,000, use…

Q: General Accounting

A: Concept of FIFO Method in Process CostingThe FIFO (First-In, First-Out) method in process costing…

Q: choose correct option in this account que.

A: Correct Answer:c. Budgets are a total amount and standards are a unit amount. Explanation:Budgets…

Q: General accounting

A: Step 1: Definition of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a costing method…

Q: ?!

A: The question requires the determination of the ROA or the Return on Assets. Return on assets (ROA)…

Q: Financial accounting

A: Step 1: Define Maturity ValueThe maturity value of a note receivable is the total amount due at the…

Q: According expert need your help

A: Question 1: Warranty expense for the current month = Estimated percentage x units sold x Average…

Q: 4 POINTS

A: 1. Calculate Gross ProfitGross Profit = Sales - Cost of Goods Sold (COGS)Gross Profit = $300,000 -…

Q: Do fast this question answer general Accounting

A: To calculate the total FICA tax for Michael, we need to consider both the Social Security tax and…

Q: What is the firm's equity on these financial accounting question?

A: To calculate the firm's equity, we use the basic accounting equation: Equity = Total Assets - Total…

Q: General account

A: Step 1: Compute Annual Depreciation ExpenseFormula: Annual Depreciation=Estimated Lifetime…

Q: Were the overheads over applied or under applied and by how much for this general accounting…

A: Step 1: Define Overhead ApplicationOverhead application refers to the process of assigning indirect…

Q: Do fast this question answer general accounting

A: Step 1: Define Change in Owner's EquityOwner's equity changes due to net income and owner…

Q: GENERAL ACCOUNTING PROBLEM

A: Explanation of Linear Function: A linear function is a mathematical relationship where changes in…

Q: expert of general financial accounting answer

A: Step 1: Definition of Overhead Cost VarianceOverhead variance refers to the difference between the…

Q: Cash flow cycle

A: Cash Flow Cycle=Inventory Period + Accounts Receivable Period−Accounts Payable PeriodGiven…

Q: The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $520,000;…

A: Given Data:Salaries:Sales salaries: $520,000Office salaries: $104,000Total salaries = $520,000 +…

Q: During 2018, Dalton Enterprises earned revenues of $95,000, had expenses of $72,000, purchased…

A: Explanation of Net Income: Net income represents the total profit a company earns after deducting…

Q: Mia Steel started the year with total assets of $325,000 and total liabilities of $174,000. During…

A: Concept of Stockholders' EquityStockholders' equity represents the ownership interest in a company…

Q: please provide correct answer of this General accounting question

A: Step 1: Define Cash Flow to Shareholders (CFS) is the cash distributed to shareholders after…

Q: Compute the anticipated break even sales and sales required?

A: Step 1: Definition of Target SalesTarget sales are the desired level of sales that a business seeks…

Q: Answer? ? Financial accounting question

A: Step 1: Define Debt-to-Equity RatioThe Debt-to-Equity (D/E) Ratio measures a company's financial…

Q: Calculate the cost of goods sold

A: Concept of Beginning InventoryBeginning inventory refers to the total value of goods a company has…

Q: Financial accounting 6.9

A: Explanation of Enterprise Value (EV): Enterprise value represents the total value of a company,…

Q: An electronics store sold a home theater system to an employee for $400, even though the retail…

A: Concept of Gross ProfitGross Profit is the amount a business earns after subtracting the cost of…

Q: None

A: We know that,Percent Yield = ( Actual Yield / Theoretical Yield) × 100Given:Theoretical yield = 72.0…

Question

100%

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Tyson & Co. values its goodwill at three years' purchase of the last four years' average profit. The recorded profits for the last four years were R.O 50,000, R.O 28,000, R.O 18,000, and R.O 14,000, respectively. Find out the value of goodwill.
Thompson & Sons values its goodwill at four years' purchase of the last five years' average profit. The recorded profits for the last five years were R.O 62,000, R.O 45,000, R.O 38,000, R.O 52,000, and R.O 43,000, respectively. Find out the value of goodwill.help
Calculate the amount of goodwill?
hello tutor please help me
Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?
Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 33.33% year 2: 44.45% year 3= 14.81% and year 4 = 7.41%. Southern has a tax date of 25%. If the asset is sold at the end of 2 years for 29,000 what is the cash flow disposal ? 17,404 11,129 13,923 21,755 27,194
An asset with a first cost of $7,000 is depreciated using the Modified Accelerated Cost recovery System (MACRS) over a 5-year period. The cash flow before taxes (CFBT) is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is retained. The effective tax rate is 40%, and the money is worth 8% per year. In present worth dollars, how much of the cash flow generated by the asset over its recovery period is lost to taxes?
An asset was acquired by Dave company with the following values: First cost= $100000, depreciable life=3 years, and an estimated salvage value of $20000. Initial investment is borrowed at 10% per year with repayment of an equal uniform amounts at the end of each year in 3 years. Expected gross income and expenses are $50000 and $10000 at year 1, respectively, and both increase by $2500 per year subsequently. The asset is actually salvaged after 3 years for $125000. A)What will be the size of each payment for the $100000 debt? How much of each payment interests and how much of each payment is principal (i.e., towards the $100000 debt)? b) Calculate depreciation using double-declining balance method (i.e., d=2/N) c) Fill in all the blank cells in the below table. Show all the calculations for all gray cells to receive full credit. Te=40% d) Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis no excel plezz
An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using declining-balance method. a. After one year b. After two years c. After six years a. The book value after one year is $ . (Round to the nearest dollar as needed.)
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
A machine can be purchased for $80,000 and used for five years, yielding the following Income. This income computation Includes annual depreciation expense of $16,000. Income Year 1 $5,300 Year 2 $13,300 Year 3 Year 4 Year 5 $35,000 $19,900 $53,200 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (80,000) $ (80,000) Year 1 $ 5,300 Year 2 13,300 Year 3 35,000 Year 4 19,900 Year 5 53,200 Payback period=
The following information relating to an investment in equipment has been extracted from the books of LRB Ltd: The total purchase price is $78,560. Net sales revenue (relating to the equipment): Year-1 $38,000; Year-2 $29,000; Year-3 $24,000; and Year-4 $20,000. The required rate of return is 12%. The expected salvage value is $14,266 at the end of year 4. The depreciation rate is 18% straight line. If the applicable tax rate is 32%, calculate the tax amount in the fourth year relating to the sale of the equipment only. Use excel spreadsheet to Answer.