Firm A acquires firm B when firm B has a book value of assets of $315 million and a book value of liabilities of $115 million. Firm A actually pays $335 million for firm B. This purchase would result in goodwill for firm A equal to. Multiple Choice $335 million $315 million $200 million $135 million
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- Firm A acquires firm B when firm B has a book value of assets of $345 million and a book value of liabilities of $130 million. Firm A actually pays $365 million for firm B. This purchase would result in goodwill for firm A equal to. Multiple Choice $215 million $365 million $150 million Help Save & Exit $345 million SSuppose that an acquirer decides to pay a 25% premium to buy Uber. The book value of Uber’s net assets is $6.7 million. The fair value of Uber’s net assets is estimated at $7 million. What amount of goodwill will be recorded in this acquisition? Question 14Answer a. $75,000 b. $8,750,000 c. $1,675,000 d. $1,750,000Tesla acquired Amazon, for $33,520,000. The fair value of all Amazon's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Multiple Choice O O $880,000 $1,760,000 $O $3,520,000 < Prev 6 of 25 Save & Ex Next
- Suppose Speedy Delivery pays $62 million to buy Lone Star Overnight. The fair valueof Lone Star’s assets is $80 million, and the fair value of its liabilities is $24 million. How muchgoodwill did Speedy Delivery purchase in its acquisition of Lone Star Overnight?a. $42 millionb. $24 millionc. $38 milliond. $6 millionThe market values of Alpha Corporation and Gamma Corporation are $2,500 and $900, respectively. Assume Alpha acquires Gamma at a cost of $1,000 and the transaction creates $100 in synergy. What would be the NPV of this acquisition to Alpha? Multiple Choice $0 $150 $50 $100 $125In a like - kind exchange, Greyland exchanged investment - use real property (FMV $210,000, adjusted basis $190,000) for a smaller piece of investment - use property (FMV $200,000) plus $10,000. They will report a $10,000 gain on the exchange. What is their basis in the replacement property? $170,000 $180,000 $190,000 $200,000
- Suppose Speedy Delivery pays $62 million to buy Lone Star Overnight. The fair value of Lone Star’s assets is $80 million, and the fair value of its liabilities is $24 million. How much goodwill did Speedy Delivery purchase in its acquisition of Lone Star Overnight?A and B are merged. A is the acquiring firm, B is the acquired firm. The recorded value of B’s assets is 300.000.000 TL, liabilities of B is 140.000.000 TL. A paid 200.000.000 TL to merge with B. How much is the goodwill? Select one: 160.000 240.000 40.000 440.000.Bryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value of Stellar’s assets is $2,000,000, and its liabilities have a fair value of $1,200,000. The book value of Stellar’s assets and liabilities are not known. For what amount would Bryer record goodwill associated with the purchase? a. $800,000.b. $500,000.c. $700,000.d. $0.
- An entity owns two investment properties, X and Y, the fair values of which are: 31 December 2006 31 December 2007 Property X 15,000,000 20,000,000 Property Y 10,000,000 8,000,000 The original cost of the properties was 9 million each when they were acquired on 1 January 2005. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties. Required: a.) Compute for the total amount recognized in December 31, 2007 statement of profit or loss. b.) Compute for the total amount recognized in December 31, 2007 statement of financial position. c.) Provide the adjusting entry on December 31, 2007.Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are charged with assigning fair values related to a $3,800,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $1,850,000. You also conclude that the purchase included a Customer List with a fair value at $340,000. a. How much Goodwill will you record in this acquisition? $ 1,610,000 ✓ b. Continuing from part (a), now also assume that the purchase and sale agreement requires the payment of an additional $925,000 if the subsidiary achieves a certain level of earnings. You estimate the fair value of that contingent earnings clause in the agreement to be $220,000. How does this additional information affect your computation of Goodwill? The amount of Goodwill recorded is $ 1,830,000 c. This part of the exercise is independent parts (a) and (b). Assume that the purchase price is $3,800,000 and that fair value of the net identifiable tangible…An entity owns two investment properties, X and Y, the fair values of which are: December 31, 2026 December 31, 2027 20,000,000 8,000,000 Property X Property Y 15,000,000 10,000,000 The original cost of the properties was P 9 million each when they were acquired on January 1, 2025. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties. Compute for the total amount of gain recognized in the December 31, 2027 statement of profit or loss?