How goodwill is now treated in a merger?
Question:
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (16 reviews)
It is placed on the books of the acquiring company but it is not amortized It is only written down ...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Question Posted:
Students also viewed these Corporate Finance questions
-
How is goodwill treated for accounting purposes in Canada and the United States?
-
A copper block of volume 1 L is heat treated at 500C and now cooled in a 200-L oil bath initially at 20C. Assuming no heat transfer with the surroundings, what is the final...
-
A merger boom comparable to those of the 1960s and mid-1980s occurred in the 1990s and into the new century. The merger activity of the 1960s was associated with increasing stock prices and heavy use...
-
Using quarterly data for 10 years, the regression results are given in the following table where CAR = number of new car sales per thousand population, PRICE = new car price index, INC= per-capita...
-
The Great Graphics Group began operations on January 1, 2010. At the end of its second year of operations, and before any adjustments had been made, the trial balance was as follows: Analysis reveals...
-
After the success of the companys first two months, Adria Lopez continues to operate Success Systems. (Transactions for the first two months are described in the serial problem of Chapter 2.) The...
-
18. Suppose the current exchange rate between Germany and Japan is 0.02 =C/. The euro-denominated annual continuously compounded risk-free rate is 4% and the yen-denominated annual continuously...
-
Martial Arts R Us (MARU) needs a database. MARU is a martial arts school with hundreds of students. It is necessary to keep track of all the different classes that are being offered, who is assigned...
-
2A. The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: Beginning balances were: Cash, $109,000; Taxes Receivable, $213,500;...
-
Q1. Review the following accounts, subtotals, and totals; (1) describe your observations; and then (2) identify what your observations indicate. A response is given for PPE, net to help with...
-
What is the difference between a merger and a consolidation?
-
Why do management and stockholders often have divergent viewpoints about the desirability of a takeover?
-
Distinguish between the terms regulation and accreditation.
-
Based on the following information, calculate the sustainable growth rate for Kaleb's Welding Supply: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 7.5% 0.65 0.60...
-
Waterway Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $216,014 at both cost and market value. At December 31, 2025, the inventory was $283,252 at cost and $262,660 at market...
-
What is the 32-bit version of: 0000 0000 0001 0101
-
1. Let A = 2 1 4 3 Find AT, A-1, (A-1) and (AT)-1. 2. Let A = = [ -1 -1 2 22 (a) Find (AB), BT AT and AT BT. (b) (AB)-1, B-1A-1 and A-B-1. ] 1-5 and B = 1
-
Xavier Ltd. paid out cash dividends at the end of each year as follows: Year Dividend Paid 2018 $250,000 2019 $325,000 2020 $400,000 Assume that Xavier had 100,000 common shares and 5,000, $4,...
-
Janes Cream Soda, Inc., makes specialty soft drinks. At the end of 2010, Janes had total assets of \($300,000\) and liabilities totaling $220,000. Requirements 1. Write the companys accounting...
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
Estimate the number of pounds of mercury it would take to fill your bathtub. List all assumptions and show all calculations.
-
What approaches can be taken in valuing a firms stock when there is no cash dividend payment?
-
The Lone Star Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is: a....
-
Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is: a. 7 percent....
-
An underlying asset price is at 100, its annual volatility is 25% and the risk free interest rate is 5%. A European call option has a strike of 85 and a maturity of 40 days. Its BlackScholes price is...
-
Prescott Football Manufacturing had the following operating results for 2 0 1 9 : sales = $ 3 0 , 8 2 4 ; cost of goods sold = $ 2 1 , 9 7 4 ; depreciation expense = $ 3 , 6 0 3 ; interest expense =...
-
On January 1, 2018, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...
Study smarter with the SolutionInn App