Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Net income figures for Pina Colada Ltd. are as follows: 2016 - $77,800 2017- $56,600 2018 - $86,300 2019. $89,400 2020 - $71,400 Future income

image text in transcribed

image text in transcribed

Net income figures for Pina Colada Ltd. are as follows: 2016 - $77,800 2017- $56,600 2018 - $86,300 2019. $89,400 2020 - $71,400 Future income is expected to continue at the average amount of the past five years. The company's identifiable net assets are appraised at $452.700 on December 31, 2020. The business is to be acquired by Flint Corp. in early 2021 The normal rate of return on net assets for the industry is 7%. Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 What amount should Flint Corp.pay for goodwill, and for Pina Colada Ltd. as a whole. if goodwill is equal to average excess earnings capitalized at 25%? Flint Corp. pay for goodwill $ Flint Corp.pay for Company s What amount should Flint Corp.pay for goodwill, and for Pina Colada Ltd as a whole, if a perpetual 18% return is expected on any amount paid for goodwill? (Round answers to decimal places, s. 5,275.) Flint Corp, pay for goodwill $ Flint Corp. pay for Company $ eTextbook and Media What amount should Flint Corp. pay for goodwill and for Pina Colada Ltd as a whole, if goodwill is equal to five years of excess earnings? (Round answers to decimal places, eg. 5,275) Flint Corp pay for goodwill $ Flint Corp pay for Company $ eTextbook and Media What amount should Flint Corp.pay for goodwill and for Pina Colada Ltd. as a whole. If goodwil is equal to the presentvalue of five years of excess earnings capitalized at 15962 (Round factor values to 5 decimal places, eg: 1.25124 and final answers to o decimal places, eg. 5,275.) Flint Corp.pay for goodwill $ Flint Corp.pay for Company $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Professor D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

8th Edition

0808046241, 9780808046240

More Books

Students also viewed these Accounting questions

Question

Explain the need for a new field of financial therapy.

Answered: 1 week ago

Question

How do todays organizations diff er from those of earlier eras?

Answered: 1 week ago