If the net present value of the target company is ________.
A) lesser than zero, the merger is acceptable
B) greater than zero, the merger is acceptable
C) greater than zero, the merger is rejected
D) equal to zero, the merger is acceptable
B) greater than zero, the merger is acceptable
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Taxes are imposed at death by the federal government in the form of an inheritance tax and by the state government in the form of an estate tax
Indicate whether the statement is true or false
Which are the categories of child labor exempted from the category of oppressive child labor under the Fair Labor Standards Act?
Michigan-based Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 20X8, for $1,100,000. The British subsidiary's net assets amounted to 500,000 pounds on the date of acquisition. On January 1, 20X8, the book values of its identifiable assets and liabilities approximated their fair values. As a result of an analysis of functional currency indicators, Leo determined that the British pound was the functional currency. On December 31, 20X8, the British subsidiary's adjusted trial balance, translated into U.S. dollars, contained $17,000 more debits than credits. The British subsidiary reported income of 33,000 pounds for 20X8 and paid a cash dividend of 8,000 pounds on October 25, 20X8. Included on the British subsidiary's income statement was
depreciation expense of 3,500 pounds. Leo uses the fully adjusted equity method of accounting for its investment in the British subsidiary and determined that goodwill in the first year had an impairment loss of 25 percent of its initial amount. Exchange rates at various dates during 20X8 follow: January 11£=$2.10 October 251£= 2.25 December 311£= 2.20 Average for 20X81£= 2.21 Based on the preceding information, what amount should Leo record as "income from subsidiary" based on the British subsidiary's reported net income? A. $69,300 B. $52,500 C. $72,600 D. $72,930
Answer the following statements true (T) or false (F)
1. Corporate distributions that exceed earnings and profits are always capital gains. 2. Corporations may always use retained earnings as a substitute for earnings and profits. 3. When computing E&P, Section 179 property must be expensed ratably over a five-year period, starting with the month in which it is expensed for Sec. 179 purposes. 4. A shareholder's basis in property distributed as a dividend is its fair market value.