Parton Corporation acquires 30% of the outstanding voting common shares of the Investee Corporation for $600,000 . Parton Corporation acquires the investment in Import Corporation by buying previously issued shares of Import Corporation from other investors. When Parton Corporation acquired 30% of Import Corporation's common shares for $600,000, Import Corporation's total shareholders' equity was
$1.5 million. Parton Corporation's cost exceeds the carrying value of the net assets acquired by $150,000 [ $600,000 - (0.30 x $1,500,000)]. Parton Corporation may pay this premium because
a. the fair values of Import's net assets differ from their carrying values, only.
b. of unrecorded assets (for example, trade secrets), only.
c. the fair values of Import's net assets differ from their carrying values and/or unrecorded assets (for example, trade secrets).
d. the liquidation values of Import's net assets differ from their carrying values, only.
e. of unrecorded liabilities (for example, contingent liabilities), only.
C
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On January 2, 2016, Christopher inherited a trust fund that he could use for college tuition. Christopher hopes to make five equal withdrawals of $40,000 each year for the next five years from the fund that will earn 10% compounded annually. The first withdrawal will be made on January 2, 2017. How much does he need to have invested in the fund on January 2, 2016, to be able to withdraw the
needed amounts each year? A) $151,631 B) $200,000 C) $244,204 D) $268,624
Which of the following is not true regarding Depreciation?
A) Depreciation allocates the cost of a fixed asset over its estimated life. B) Depreciation expense reflects the decrease in market value each year. C) Depreciation is an allocation not a valuation method. D) Depreciation expense does not measure changes in market value.
Sales tax related:
a. Determine which services/items of DM Yard Services are subject to WI sales tax, support by the WI sales tax publication specific to landscaping services, copy and paste only pertinent area into your Word document for February questions. b. List 3 county or additional sales tax rates. Why are they different? c. List 1 type of organization exempt from sales tax. d. “Print” (screen shot/snip) the QuickBooks help screen on how to set up sales tax.
When defining information (fields) for a relation, you should ensure that:
A. the information for this relation cannot be derived from other information. B. the information for this relation can be found in other relations. C. the information can be identified by the primary key and by other fields in the relation. D. the information can be identified by the foreign key in this relation.