year). Compute future earnings. Select one: O a. 55390 O b. 59610
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alpha Company plans to acquire the net
assets of Company Beta, the following data
are available from Company Beta: net
income in year 1: 55000 JD, year 2: 60000
JD. Assets include: equipment with FV 10%
higher than book value, building with FV
5% higher than book value, patents with
8% lower than book value, discontinued
gain 600 (year 2), extraordinary loss 1000
(year 1), equipment depreciation (each
year) 14000 JD, building depreciation (each
year) 9000 JD, patent amortization (each
year) 12000 JD, salaries exp. 600 JD (each
year). Compute future earnings.
Select one:
a. 55390
O b. 59610
O c. 58190
O d. 56810
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