Overemphasis on purchase price frequently results in failure to address other significant costs.
Answer the following statement true (T) or false (F)
True
Overemphasis on acquisition cost or purchase price frequently results in failure to address other significant ownership and post-ownership costs.
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Indicate whether the statement is true or false
Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness, Inc. Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell the seller who that third party is. Jock is
A. a disclosed principal. B. an apparent principal. C. an undisclosed principal. D. a partially disclosed principal.
Brooks Brothers has done very well the past year and its stock price is now trading over $100 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following chart comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price.?BeforeAfter 100% Stock DividendAfter 2-for-1 Stock SplitCommon stock, $1 par value$10,000??Additional paid-in capital 250,000??Total paid-in capital260,000??Retained earnings 150,000??Total stockholders' equity$410,000??Shares outstanding10,000??Par value per share$1??Share price$102??2. What is the primary reason companies declare a large stock dividend or a stock
split? What will be an ideal response?
Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2017. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2017 and $68,000 in 2018, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2017 and $36,000 in 2018, and paid dividends of $10,000 in dividends each year.If the parent's net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2018?
What will be an ideal response?