Business, 06.04.2021 01:00 EMscary4996

Assume Manav Corporation purchased 25 % of the outstanding common stock of Devon Inc. on January 1, 2020 for $1,000,000. At the date of acquisition of the stock, Devon's total net assets had a fair value of $3,500,000 and a book value of $3,100,000. The undervalued assets have a remaining useful life of 5 years. Assume Devon, Inc. earned $100,000 and paid $50,000 of dividends. All of the goodwill was related to a Patent that was worthless at the end of the year. Required:
Compute the amount that would be reported for the investment on Manav Corporation's financial statements at December 31, 2021. Investment amount $236,000.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 10:40

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. recently, you saw that stubhub was listing similar seats for $225 apiece. what does it cost you to attend the concert?

Answers: 1

Answer

Business, 22.06.2019 14:00

Bayside coatings company purchased waterproofing equipment on january 2, 20y4, for $190,000. the equipment was expected to have a useful life of four years and a residual value of $9,000. instructions: determine the amount of depreciation expense for the years ended december 31, 20y4, 20y5, 20y6, and 20y7, by (a) the straight-line method and (b) the double-declining-balance method. also determine the total depreciation expense for the four years by each method. depreciation expense year straight-line method double-declining-balance method 20y4 $ $ 20y5 20y6 20y7 total $

Answers: 3

Answer

Business, 22.06.2019 19:20

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.

Answers: 1

Answer

Business, 22.06.2019 21:30

Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?

Answers: 1

Answer

You know the right answer?

Assume Manav Corporation purchased 25 % of the outstanding common stock of Devon Inc. on January 1,...

Questions