The price-earnings ratio is computed by dividing earnings per share by the market price per share.
Answer the following statement true (T) or false (F)
False
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On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: PumpkinSpiceCash $50,000 $15,000 Accounts Receivable 70,000 25,000 Inventory 30,000 20,000 Land 150,000 80,000 Buildings and Equipment 250,000 200,000 Less: Accumulated Depreciation (70,000) (20,000) Investment in Spice Co. 210,000 Total Assets $690,000 $320,000 Accounts Payable $40,000 $10,000 Bonds Payable 150,000 40,000 Common
Stock 300,000 90,000 Retained Earnings 200,000 180,000 Total Liabilities and Equity $690,000 $320,000 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000.Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? A. $800,000 B. $1,010,000 C. $830,000 D. $1,040,000
A series of equal cash flows at fixed intervals is termed a(n):
A) present value index B) price-level index C) net cash flow D) annuity
Four major drug companies got together and decided to set the prices they would all charge for Vitamin B and they also divided up sales territories and determined how much each company would
sell in each area. Which of the following statements is FALSE? Each company A) could be found guilty of conspiracy B) could be found guilty of price fixing C) could be fined up to $25million and face up to 14 years in jail D) face administrative monetary penalties of up to $10 million E) could receive a prohibition order
Otto mistakenly pays property taxes that should have been assessed against Pip. Otto can recover the amount from Pip in quantum meruit
a. even if Pip was not aware of the error. b. only if Pip tried to conceal the error. c. only if Pip was aware of the error. d. only if Pip consents.