The Clementine Company agreed to purchase the Orange Company for $650,000. At the date of purchase, Orange had current assets with a fair market value of $400,000, noncurrent assets (including no marketable securities) with a fair market value of $700,000, and liabilities of $500,000. In accounting for this transaction, Clementine should
A) record noncurrent assets at $650,000.
B) record a debit of $50,000 as a loss on the purchase.
C) record goodwill of $50,000 to be reviewed annually for impairment.
D) record current assets at $550,000.
C
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Erin knows exactly what benefits she will receive when she retires. She has worked for the same organization for 20 years and will receive 65% of the average of her two highest years of pay. Erin’s retirement plan is a ______ plan.
A. defined benefit B. defined contribution C. vesting D. experience
In Kotter’s change process,
a. all stages must be worked through in order b. only relevant stages need to be applied to the change process c. stages do not overlap d. stages can be skipped in the interest of completing on time
An invitation to submit bids¾"how much would you charge to do this work?"¾is an offer.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yield and a higher capital gains yield than the par bond. B. A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate. C. If a bond sells at par, then its current yield will be less than its yield to maturity. D. If a bond sells for less than par, then its yield to maturity is less than its coupon rate. E. A discount bond's price declines each year until it matures, when its value equals its par value.