1.

2.

On September 1, 2019, Undisputed Corporation acquired TLC Enterprises for a cash payment of $850,000. At the time of purchases, TLC’s balance sheet showed assets of $620,000, liabilities of $240,000, and owner's equity of $420,000. The fair value of TLC’s assets is estimated to be $970,000.

A: Compute the amount of goodwill acquired by Undisputed Corporation.

On September 30th, 2020 assume the TLC Enterprises Division of Undisputed Corporation has the following balance sheet. Assets (including goodwill): $1,030,000 – 350,000= 680k net asset Liabilities: 350,000 Equity: 680,000

B: Based on the above information, Assuming the FMV of the division is $750,000, determine the Goodwill Impairment to be recorded (and prepare the journal entry)

C: Independently from “B”, now Assuming the FMV of the division is $650,000 determine the Goodwill impairment to be recorded (and prepare the journal entry)

Oil & Gas Industry

1.Given the Larger Environment and Industry Structure, Your Prediction of what the Industry will look like in 10 years from today.

------ Strategic Management Course , MBA

The CEO of HuaWa Company is considering a five-year investment project of setting up a production factory in Shezhen of China for manufacturing 5G (5^th Generation) mobile phones. You are a financial manager of the company. Under this current situation of China, explain to the CEO the major considerations and problems associated in the estimation of cashflow of this project. The CEO knows that there are (Internal Rate of Return) IRR and (Net Present Value) NPV methods to evaluate the project. When would it be better to use IRR rather than NPV method to examine the acceptability of the project in this case? The CEO also asks you if it is possible to have a positive initial cash flow at the beginning of the project. Respond also to this question of CEO and illustrate your explanation with example(s). (limit your answer to 450 words

The income for Saxbys Cafe at Temple University income for the period January - June, 2020 is as follows:

(a) Use exponential smoothing with α =0.1 and α =0.3 to forecast July income. Assume that the initial forecast for February 2020 is $65,000.

Show Work please

(b) Based on MAD, which smoothing constant provide a better forecast? Justify your answer.

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

Debit CreditAccounts payable   $55,800Accounts receivable$42,500   Additional paid-in capital    50,000Buildings (net) (4-year remaining life) 209,000   Cash and short-term investments 67,250   Common stock    250,000Equipment (net) (5-year remaining life) 357,500   Inventory 136,000   Land 114,000   Long-term liabilities (mature 12/31/23)    168,500Retained earnings, 1/1/20    414,650Supplies 12,700   Totals$938,950 $938,950

During 2020, Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000.

Assume that Chapman Company acquired Abernethy’s common stock for $819,720 in cash. Assume that the equipment and long-term liabilities had fair values of $378,350 and $137,980, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

During 2020, Abernethy reported net income of $101,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $152,000 while declaring and paying dividends of $39,000.

Assume that Chapman Company acquired Abernethy’s common stock for $664,740 in cash. Assume that the equipment and long-term liabilities had fair values of $349,250 and $151,060, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021

Tai Corp discontinued their tea division in 2020. The division made an operational loss of $2 million in 2020, and their assets were sold at a net loss of $1 million. The firm incurred a $500,000 cost on severance pay and retraining their employees for different functions. Tai Corp included the $500,000 cost on their 2020 income statement as part of their operational expenses. Are they acting in accordance of US GAAP? Why or why not?

At December 31, 2019, certain accounts included in the property, plant, and equipment section of Novak Company’s balance sheet had the following balances.

During 2020, the following transactions occurred.

The building was completed and occupied on September 30, 2020.

(a)

Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. Disregard the related accumulated depreciation accounts.