MANAGERIAL ACCOUTING LL WITH ACCESS
MANAGERIAL ACCOUTING LL WITH ACCESS
16th Edition
ISBN: 9781307670585
Author: Garrison
Publisher: MCG
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Chapter 13, Problem 23P
To determine

Concept Introduction:

Concept of payback period:

When the payback period is computed after discounting the cash flows by a pre-determined rate (cut-off rate), it is called as the ‘Discounted Payback Period’.

Concept of Profitability Index : Where different investment proposals each involving different initial investments and cash inflows are to be compared, the Profitability Index (PI) technique is used

MANAGERIAL ACCOUTING LL WITH ACCESS, Chapter 13, Problem 23P , additional homework tip  1

Concept of ARR:

Accounting (or) Average Rate of Return (ARR) means the average annual yield on the project. In this method profit after tax (PAT) instead of (FAT) is used for evolution.

MANAGERIAL ACCOUTING LL WITH ACCESS, Chapter 13, Problem 23P , additional homework tip  2

MANAGERIAL ACCOUTING LL WITH ACCESS, Chapter 13, Problem 23P , additional homework tip  3

The payback period, net present value for each product, internal rate of return for each product, project profitability index, simple rate of return.

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Consolidation after Several Years  On January 1, 2016, Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams’ shares used in the exchange was $37,500,000. At the time of acquisition, the book value of Baker’s shareholders’ equity was $5,000,000, and the book value of Baker’s building (25-year life) exceeded its fair value by $1,000,000. From the date of acquisition to December 31, 2021, Baker had cumulative net income of $1,300,000. For 2022, Baker reported net income of $300,000. Adams uses the complete equity method to account for its investment in Baker. There is no goodwill impairment loss for the period 2016 through 2021, but there is impairment loss of $100,000 in 2022. Baker declared no dividends during the period 2016–2022.  Required  Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December 31, 2022. Enter numerical answers using all zeros (do not abbreviate in thousands or in…
Give me the answer in a clear organized table please. Thank you!
Give me the answer in a clear organized table please. Thank you!

Chapter 13 Solutions

MANAGERIAL ACCOUTING LL WITH ACCESS

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