If negative goodwill is still remaining after allocations, the remaining amount is recognized as an extraordinary gain.

Question:

If negative goodwill is still remaining after allocations, the remaining amount is recognized as an extraordinary gain. Does this meet the definition of an extraordinary item?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Advanced Financial Accounting

ISBN: 9780131236998

5th Edition

Authors: Thomas H. Beechy

See More Books

Question Posted: Jan 31, 2024 04:00 AM

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
China Petroleum and Chemical Corporation China Petroleum and Chemical Corporation (CPCC) is one of a growing number of Chinese companies that has cross-listed its stock on foreign stock exchanges. To...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
The monthly earnings of financial analysts are normally distributed with a mean of $5,700. If only 6.68 % of the financial analysts have a monthly income of more than $6,140, what is the value of the...
How does the riskiness of this 2-stock portfolio compare with the riskiness of the individual stocks if they were held in isolation?
Unit-Level, Batch-Level, Product Line, and Facility Support Costs The company has determined that its total manufacturing overhead cost of $900,000 is a mixture of unit-level, batch-level, product...
4. You are an equity analyst and have computed the following figures for two manufacturers of paper products. The first, PaperPro, has NOPLAT of $325 million, invested capital without goodwill of...
Three years ago American Insulation Corporation issued 10 percent, $800,000, 10-year bonds for $770,000. Debt issue costs were $3,000. American Insulation exercised its call privilege and retired the...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable...
Define push-down accounting.
Under what circumstances would a corporation be able to obtain control over the net assets of another corporation for less than the fair value of those net assets? Explain.
Why should extreme caution be used when applying impact test data?
Problem 2.01 An ant is crawling along a straight wire, which we shall call the x axis, from A to B to C to D (which overlaps A), as shown in the figure below. O is the origin. Suppose you take...
In a separate C++ program, do the following: a) Create an unordered linked list by declaring a linked list of the unordered LinkedList type. You may assume that this list is to be comprised of...
TranscribedText: El. You are sitting at a table that has a solid round top {5.1"} kg] and a single solid cvlindrical leg {4. kg) [see figure, note that the tilt angle is exaggerated to he...
The municipal mill rate in the neighbourhood is 22.375 mills. There is an educational mill rate of 11.35 mills. The following list is the municipalities planned local improvement costs for the next...
Maggie Company had the following functional income statement for the month of May, 2020: MAGGIE COMPANY Functional Income Statement For the Month Ending May 31, 2020 Sales (30,000 units) $300,000...
Fig. 6-3 shows the concept of a resource graph. Do illegal graphs exist, that is, graphs that structurally violate the model we have used of resource usage? If so, give an example of one.
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
Frank Smythe, the owner of Cuppola Ltd., has asked you to compare the operations and financial position of his company with those of Ling Ltd., a large company in the same business and a company that...
Sandy Panchaud has come to you for some independent financial advice. He is considering investing some of his money in an operating company, and he wants to know which of the two alternatives he has...
Alpha Ltd. is considering building a second plant at a cost of $4,700,000. Management has two alternatives to obtain the funds: (1) sell additional common shares or (2) issue $4,700,000, five-year...
How to solve general ledger cash balance chapter 9 assignment 5
On 31 July 2018, Sipho bought 1 000 ordinary shares in ABC Ltd at a cost of R2 750. On 31 December 2018 the company made a 1 for 10 bonus issue. On 31 March 2019, Sipho sold 300 shares for R800. What...
If you purchase a $1000 par value bond for $1065 that has a 6 3/8% coupon rate and 15 years until maturity, what will be your annual return? 5.5% 5.9% 5.7% 6.1%

If negative goodwill is still remaining after allocations, the remaining amount is recognized as an extraordinary gain.

Question:

Step by Step Answer:

An extraordinary item was a term used in income statements for events and transactions that are dist...View the full answer

Advanced Financial Accounting

Students also viewed these Accounting Theory questions