The balance sheet of Flo's Restaurant showed total assets of $620,000, liabilities of $208,000 and stockholders' equity of $462,000. An appraiser estimated the fair value of the restaurant assets at $740,000. If Alice Company pays $1,025,000 cash for the restaurant, what is the amount of goodwill?
A. $405,000
B. $493,000
C. $563,000
D. $285,000
Answer: B
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The amount for Dividends will appear in the Income Statement columns of a work sheet
Indicate whether the statement is true or false
Which of the following terms is defined as the degree to which a person accomplishing a task receives information about performance from performing the task itself?
A. horizontal complexity B. vertical complexity C. task feedback D. task autonomy
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$925 $525 $485 $445 $405
A. 2.40 years B. 2.14 years C. 2.25 years D. 1.95 years E. 1.86 years
Jack is a trucker who makes his living moving modular homes. This is a dangerous business in that the portions of the houses once on the truck are wider than the road lanes. Also, Jack frequently has to travel much more slowly than the other vehicles on
the road. One day, Jack, on his way to Atlanta with a modular home in tow, found himself approaching two trucks coming from the opposite direction with the words "High Museum Exhibits" on the truck panels. When Jack swerves to avoid a bicyclist, a museum truck runs off the road and tumbles down an embankment. No one is harmed, but the exhibit being transported is damaged. Discuss the various theories of liability that might be applied here and why they would be appropriate.