Question
In: Accounting
Find the FASB rules that define how to compute the goodwill (or gain on bargain purchase)...
Find the FASB rules that define how to compute the goodwill (or gain on bargain purchase) in a business combination. Then find the general rule that says goodwill should not be amortized. (You may look for the allowable alternative of amortizing goodwill, for private companies.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
5. Recognizing goodwill or gain from a bargain purchase is thefinal step of acquisition method....
5. Recognizing goodwill or gain from a bargain purchase is the
final step of acquisition method. Therefore, Goodwill or Gain on
bargain purchase is measured as the difference between the:Select one:a. Cost of the assets given up and the cost of the net assets
acquired.b. Fair value of the consideration transferred, and the fair
value of net identifiable assets.c. present value of the consideration transferred, and the
present value of the net assets acquiredd. Cost of the net assets acquired,...
Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are...
Compute the amount of acquired Goodwill, including
contingent earnings and bargain purchase
Assume that you are charged with assigning fair values related
to a $4,560,000 acquisition. You determine that the fair value of
the net identifiable tangible assets is $2,220,000. You also
conclude that the purchase included a Customer List with a fair
value at $408,000.
a. How much Goodwill will you record in this acquisition?
$Answer
b. Continuing from part (a), now also assume that the purchase
and sale...
Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are...
Compute the amount of acquired Goodwill, including contingent
earnings and bargain purchase
Assume that you are charged with assigning fair values related
to a $6,080,000 acquisition. You determine that the fair value of
the net identifiable tangible assets is $2,960,000. You also
conclude that the purchase included a Customer List with a fair
value at $544,000.
How much Goodwill will you record in this acquisition?
Continuing from part (a), now also assume that the purchase and
sale agreement requires the...
Find the FASB rules that define when one company is deemed to have control over a...
Find the FASB rules that define when one company is deemed to
have control over a second one. Also find the rule that says at
what level of stock ownership an investor is presumed to have
significant influence over an investee.
a company records a "Gain on bargain purchase' as a result of buying another company in...
a company records a "Gain on bargain purchase' as a result of
buying another company in the same industry for less than the fair
value of its net assets. what would be the best classification in
the reformulated income statement>
a. financial income
b. core operating income from sales
c. core other operating income
d.unusual operating incom
e. financing OCI
What is a bargain purchase option? How is it treated for a capital lease?
What is a bargain purchase option? How is it treated for a
capital lease?
What is Goodwill?How is it treated under the Purchase method?
What is Goodwill?How is it treated under the Purchase
method?
How are direct combination costs, contingent consideration, and a bargain purchase reflected in recording an acquisition...
How are direct combination costs, contingent consideration, and
a bargain purchase reflected in recording an acquisition
transaction?
Show how to compute the probability of winning the jackpot in the megamillions lottery. The rules...
Show how to compute the probability of winning the jackpot in
the megamillions lottery. The rules are at
http://www.megamillions.com/how-to-play under ”How to play”. (a)
First let us define an appropriate sample space Ω where Ω = {(i1,
i2, i3, i4, i5;i6)|what has to hold about i1, . . . , i6}? (b) How
many outcomes are in Ω? (c) What is the probability of winning the
jackpot? (d) Do you have a better chance of winning the jackpot in
powerball...
how to compute for gain on sale of land, cash from sale of common stock, and...
how to compute for gain on sale of land, cash from sale of
common stock, and cash used for dividends?
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