Panoz Corporation issues 1 million shares of stock, valued at $50 per share, to acquire all of the stock of Shelby, Inc. Panoz accounts for the acquisition as a stock acquisition. Balance sheet information at the date of acquisition is as follows (in millions): Panoz Corp. Shelby, Inc.
Book Value Dr (Cr) Book Value Dr (Cr) Fair Value Dr (Cr)
Cash and receivables $10 $5 $6
Inventory 40 10 7
Property and equipment, net 350 100 90
Investment in Shelby 50 -- --
Current liabilities (60) (20) (20)
Long-term liabilities (200) (80) (78)
Capital stock (120) (10)
Retained earnings (100) (6)
Accumulated other comprehensive income 10 (1)
Treasury stock 20 2
Total $0 $0

Shelby has no previously unrecorded identifiable intangible assets.

Required:
a. Calculate the amount of goodwill recognized for this acquisition.
b. Prepare the consolidation working paper at the date of acquisition.
c. Prepare the consolidated balance sheet, in good form, at the date of acquisition.

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Alocal club is selling christmas trees and deciding how many to stock for the month of december. if demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level?

Chipotle mexican grill, the american mexican food chain restaurant, opened its first restaurant in the united states in 1993. in 2010, chipotle opened its first restaurant in the united kingdom in london on charing cross. by late may 2013, the company had 6 restaurants in london, but they have not been doing well even though the british have taken a liking to mexican food (boyle, 2013). why has this successful u.s. chain not seen the same success overseas? if you were chipotle's ceo, how would you fix this situation? what is an alternative means of venturing outside of its domestic markets that may allow for a competitive advantage? then, pick a company that has not yet expanded overseas, or if it has expanded, suggest a different strategy for entrance into an overseas market that you feel would be more strategic for the company. research its rivals in the global marketplace and market conditions in the overseas market you are targeting. justify your recommended entry strategy based on these industry and market conditions.