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On January 1, Year 1, RAK, Inc. acquired a 25% Interest in Tech Corp. for $375,000. At the date of acquisition, the net assets had
On January 1, Year 1, RAK, Inc. acquired a 25% Interest in Tech Corp. for $375,000. At the date of acquisition, the net assets had a fair value in excess of shareholders' equity of $200,000. The fair value in excess of book value is the result of equipment with a remaining useful life of four years. For the year ended December 31, Year 1. Tech had net income of $60,000 and RAK received a dividend of $10,000 from Tech At December 31, Year 1, Tech had shareholders' equity of $820,000. What is the amount of goodwill associated with RAK's purchase of Tech? O $175,000 $170.000 O $125,000 $93,750 Interest paid on a discount bond in a given period is: O Equal to interest expense less the amortization of the discount. O Equal to interest expense plus the amortization of the discount. The coupon rate multiplied by the increasing carrying value each period. The coupon rate multiplied by the decreasing carrying value each period. Rich Bames works for the Clabor Company. Based on his years of service and salary grade, Barnes cams 15 vacation day per month and 1.0 sick days per month. In Year 1, Bames has 9 unused vacation days and 12 unused sick days. At the end of Year 2. Barnes has 6 additional unused vacation days and 3 additional unused sick days. If Barnes earns $20 per hour, and Claborn uses 8 hour workdays, what amount will Clabor most likely have accrued for Barnes at the end of Year 22 o $960 O $1.440 O $2,400 o $4,800
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