International Business: The Challenges of Globalization (8th Edition)
8th Edition
ISBN: 9780133866247
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
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Question
Chapter 8.2, Problem 3QS2
Summary Introduction
To discuss:
The reasons nations belonging to European Free Trade Association not want to join the European Union.
Introduction:
In 1960, several countries banded together to form European Free Trade Association to focus on industrial goods and not consumer goods. European Union was formed by some original member country of European Free Trade Association and some new members joined European Free Trade Association. There are currently four members in European Free Trade Association, Iceland, Norway, Switzerland and Liechtenstein.
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Solve this question and accounting question
Assume that the following statements of financial position are stated and a book value.
Alpha Corporation
Current Assets
$15,000
Current Liabilities
$5,400
Net Fixed Assets
39,000
Long-Term Debt
10,100
Equity
38,500
$54,000
$54,000
Beta Corporation
Current Assets
$3,600
Current Liabilities
$1,400
Net Fixed Assets
6,700
Long-Term Debt
2,100
Equity
6,800
$10,300
$10,300
Suppose the fair market value of Beta’s fixed assets is $9,500 rather than the $6,700 book value shown. Alpha pays $17,300 for Beta and raises the needed funds through an issue of long-term debt. Construct the post-merger statement of financial position now, assuming that the purchase method of accounting is used.
Please explain the solution to this general accounting problem using the correct accounting principles.
Chapter 8 Solutions
International Business: The Challenges of Globalization (8th Edition)
Ch. 8.1 - Prob. 1QS1Ch. 8.1 - Prob. 2QS1Ch. 8.1 - Prob. 3QS1Ch. 8.1 - Prob. 4QS1Ch. 8.2 - Prob. 1QS2Ch. 8.2 - Prob. 2QS2Ch. 8.2 - Prob. 3QS2Ch. 8.3 - Prob. 1QS3Ch. 8.3 - Prob. 2QS3Ch. 8.3 - Prob. 3QS3
Ch. 8.4 - Prob. 1QS4Ch. 8.4 - Prob. 2QS4Ch. 8.4 - Prob. 3QS4Ch. 8 - Prob. 1TAI1Ch. 8 - Prob. 2TAI1Ch. 8 - Prob. 3TAI2Ch. 8 - Prob. 4TAI2Ch. 8 - Prob. 5ECCh. 8 - Prob. 6ECCh. 8 - Prob. 7ECCh. 8 - Prob. 8MESPCh. 8 - Prob. 9MESPCh. 8 - Prob. 10MESPCh. 8 - Prob. 11MESPCh. 8 - Prob. 12MESPCh. 8 - Prob. 13MESP
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