Which of the following is correct in a Forward Triangular Merger. Cash and stock may be used as consideration A combination of parent and subsidiary stock may be used. Target shareholder's approval is not necessary. At least 40% of targets assets must be acquired.
Q: Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: As a boba manufacturer company, Ngeboba supplies boba to Gula Hula and BobaTime. Ngeboba supplies…
A: Transfer pricing can be defined as the value which is attached to the goods or services transferred…
Q: Newhard Company assigns overhead cost to jobs on the basis of 114% of direct labor cost. The job…
A: The manufacturing cost is a cost which is incurred by a company to produce its product for running…
Q: The stockholders' equity section of TVX Company on February 4 follows. Common stock-$25 par value,…
A: Total stockholder's equity = Common stock + Paid in capital in excess of par - common stock +…
Q: Bad Brad's BBQ had cash flows for the year as follows ($ in millions): Cash received from: Customers…
A: A statement which shows inflow and outflow of cash under three different activities, called as cash…
Q: Another name for a temporary account is a(n): O Real account. O Contra account. O Accrued account. O…
A: Each financial transaction of a firm involves at least two accounts. Accounts can be categorised…
Q: For the 2022 taxation year, Marion Blue has net employment income of $45,000, spousal support…
A: Net employment income: $45,000Spousal support received: $18,000Net business loss: $3,500Interest…
Q: id you not answe
A: Depreciation expense is the amount of the assets that are depreciated in a period.Accumalated…
Q: Change five of the numbers. Practical Volume is 90,000. Units produced will be88,000. Direct Labor…
A: Solution 1:Actual rate of variable overhead = $125,000 / 170000 = $0.735294 per DLHStandard rate of…
Q: Optimus Company manufactures a variety of tools and industrial equipment. The company operates…
A: Responsibility Report: Responsibility Report is a detailed report of all budgets for individual…
Q: Exercise 1-15A (Static) Preparing an income statement and a balance sheet LO 1-7 Majka Company was…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: 17. When determining the uncollectible accounts expense in computing taxable income, income tax…
A: Uncollectible Accounts: These refers to all the loans, accounts receivables, and other forms of…
Q: Question Content Area Dawson Company manufactures small table lamps and desk lamps. The following…
A: Overhead costs are the business costs related to the day-to-day business activities. This includes…
Q: 3. Assume Weisman uses the equity method to account for its investment in Martindale. What is the…
A: Pre-consolidation income refers to the earnings generated by a subsidiary before consolidation into…
Q: The following information is for a copyright owned by Flounder Corp., a publicly accountable entity,…
A: Impairment Cost -A unique or sporadic event, such as a shift in the marketplace or laws, a shift in…
Q: RelyaTech Corporation manufactures a number of products at its highly automated factory. The…
A: Management should examine a variety of aspects while rating items in order to optimize profit. The…
Q: Wildhorse Company purchased, on January 1, 2020, as a held-to-maturity investment, $67,000 of the…
A: The question is based on the concept of Financial Accounting.Investments are recorded as financial…
Q: 8 A company has income before income taxes of $879,000 for the current year. The current provision…
A: The income statement shows the company's revenues and expenses earned during the particular period.…
Q: Sales are budgeted at $307,000 for November $327,000 for December, and $227,000 for January…
A: Accounts payable (AP) is a term used in accounting to refer to the amount of money a company owes to…
Q: Flight Cafe prepares in-flight meals for airlines and its planning budget for July appears below:…
A: The variance is the difference between the standard and actual cost data. The activity variance is…
Q: Ilene rents her second home. During the year, Ilene reported a net loss of $10,600 from the rental.…
A: A deduction is an expense that can be subtracted from a taxpayer's gross income in order to reduce…
Q: Southeastern College began the year with endowment investments of $1,430,000 and $850,000 of…
A: Non profit organisations are those organisations which do not run for the purpose of profits. Main…
Q: Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following…
A: Cost sheet is one of useful concept used in cost accounting. Cost of goods manufactured means total…
Q: How do they calculate this?
A: YearSales RevenueCostProfit Margin %Critical PointMargin of…
Q: Bramble Stores accepts both its own and national credit cards. During the year, the following…
A: Journal Entries Record All Business Transactions In The Accounting Journal. This Is The First Step…
Q: Corporation C produces a chemical product which it sells to other manufacturers. In 2014, the…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: Effect of doubtful accounts on net income During its first year of operations, Mack's Plumbing…
A: ALLOWANCE FOR DOUBTFUL DEBT ACCOUNT Allowance for Doubtful Debt Account is Considered as Contra…
Q: Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a…
A: THROUGHPUT TIMEThroughput time is the amount of time it takes for a product or service to go through…
Q: Brett purchased 1000 shares o
A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period,…
Q: How much additional revenue should the company generate in order to recover net income? DS/DID SIS
A: Answer:Fraud amount = $414 millionProfit margin = 10%
Q: A CPA is not independent with respect to a company's financial statements. The CPA may issue what…
A: Financial statements are a series of documents that demonstrate the financial position of your firm…
Q: Able Elf Services has offered to do all the toy assembly and gift wrap for Santa's elves. The annual…
A: The decision between in-house production and outsourcing involves a thorough analysis of various…
Q: following table is a simplified balance sheet of Lancia Company for the year ended December 31, 2018…
A: Cash Flow Statement -The cash flow statement, commonly known as the statement of cash flows, is one…
Q: The measurement basis most often used to report a long-term paya a commitment to pay money at a…
A: Accounting Principals -Accounting standards, such as GAAP and IFRS, provide a set of rules and…
Q: Pharoah Company incurred $890000 of research and development costs in its laboratory to develop a…
A: Patents:A patent is an intangible asset, as it does not have any physical existence. The patent…
Q: Compute the following ratios for 2022. (Round earnings per share, current ratio and asset turnover…
A: a)Earning Per Shares = Net Income/ Average Number Of Shares Outstanding= $209700/58000= $…
Q: Using these data from the comparative balance sheets of Wildhorse Co., perform horizontal analysis.…
A: Horizontal analysis is the way to calculate the variance from the different year by year to show an…
Q: The following partial information is taken from the comparative balance sheet of Levi Corporation:…
A: The stockholders' equity comprises issued capital and retained earnings of the business. The average…
Q: 3. TP received a proportionate non liquidating distribution from an LLC in which he is a 10% member.…
A: A member of an LLC who receives a distribution is responsible for accounting for the dividend's tax…
Q: Company A (ksson) has reached a lease agreement with Company B (lessor) to lease a new carpel…
A: A lease may be a finance lease or an operating lease from a lessor's point of view. The asset which…
Q: 1 Which AICPA Conduct Rule applies only to members in the practice of public accounting? O A.…
A: Public accounting refers to the branch of account that involves furnishing auditing, tax,…
Q: Determine the weighted-average number of shares outstanding as of December 31, 2026. The…
A: a.The weighted average number of shares outstanding as of December 31, 2026.Computation of weighted…
Q: Monty Construction Company changed from the cost-recovery to the percentage-of-completion method of…
A: Retained earnings are the profits left over after a corporation has paid all of its direct and…
Q: Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should…
A: Dividend:A dividend is a reward paid out of a company's net profits to the shareholders for…
Q: What is the main purpose of information presented in notes to the financial statements? • To provide…
A: Eliminating the incorrect options:B. To correct improper presentation in the financial…
Q: Manufacturers Southern leasedhigh tech electronics equipment from international machines on January…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: A company could use other gains and losses to Omanipulate its stock price. reduce reported sales,…
A: "Other gains and losses" in financial reporting refer to non-operating items that can impact a…
Q: 8) Which types of taxes currently in law from today would JS Mill approve of? Why? taxeson wea death…
A: Income Tax at a Graduated Rate: Mill may approve an income tax with a progressive or graduated rate.…
Q: Skysong, Corporation issued the following statement of cash flows for 2022. Skysong, Corporation…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Assets Cash Accounts Receivable Prepaids Inventory Property, Plant & Equipment Less: Accumulated…
A: A Statement of cash flow is a financial statement that includes the inflow and outflow of cash…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire this method? How is any premium that theacquiring firm paid over the acquired firm’s bookvalue treated subsequent to a merger?In the business combination of Polka and Spot Select one: a. all of the costs except those of registering and issuing the securities are included in the purchase price of Spot. b. the salaries of Polka's employees assigned to the merger are treated as expenses. c. only the accounting and legal fees are included in the purchase price of Spot d. the costs of registering and issuing the securities are included as part of the purchase price for Spot.Consider the following data in relation to a proposed acquisition, where Firm B will take over Firm A in a horizontal takeover. Pre-merger Value A $550m Pre-merger Value B $420m Post-merger Value A + B $1,150m Cash Offer $580m Share Offer 52% of Shares in A + B Estimate the gains available from the merger. Estimate the value of the merger to firm A’s shareholders under both the cash and share offer. Estimate the value of the merger to firm B’s shareholders under both the cash and share offer. Which offer will predominate, cash or shares, if the shareholders of A are given the choice?
- When one company buys the assets and liabilities of another company, this is known as which of the following?Choose one answer.a. Limited liability company b. Merger c. Conventional corporation d. AcquisitionConsider the following data in relation to a proposed acquisition, where Firm B will take over Firm A in a horizontal takeover. Pre-merger Value A $600m Pre-merger Value B $475m Post-merger Value A + B $1,200m Cash Offer $630m Share Offer 53% of Shares in A + B a. Estimate the gains available from the merger. b. Estimate the value of the merger to firm A’s shareholders under both the cash and share offer. c. Estimate the value of the merger to firm B’s shareholders under both the cash and share offer. d. Which offer will predominate, cash or shares, if the shareholders of A are given the choice?Which one of the following statements correctly applies to a merger? Multiple Choice The acquiring firm does not have to seek approval for the merger from its shareholders. The shareholders of the target firm must approve the merger. The acquiring firm will acquire the assets but not the debt of the target firm. The merged firm will have a new company name. The titles to individual assets of the target firm must be transferred into the acquiring firm's name.
- Which of the following is NOT included in the cost of an acquired company? (applying section 19 of IFRS for SMEs) a. Contingent consideration determinable at the consummation date of the combination b. Finder’s fee for arranging the combination c. Cost of registering and issuing equity securities d. None of the aboveWhich of the following statements is most CORRECT? Oa. The primary rationale for most operating mergers is synergy. Ob. In most mergers, the benefits of synergy and the premium the acquirer pays over the market price are summed and then divided equally between the shareholders of the acquiring and target firms. Oc. Financial theory says that the choice of how to pay for a merger is really irrelevant because, although it may affect the firm's capital structure, it will not affect its overall required rate of return. Od. The basic rationale for any financial merger is synergy and, thus, the estimation of pro forma cash flows is the single most important part of the analysis. Oe. The acquiring firm's required rate of return in most horizontal mergers will not be affected, because the 2 firms will have similar betas.What is the answer of following question? (a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of theintra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on consolidation? (b) What is a non-controlling interest, and how should it be disclosed? (c) How are non-controlling interests affected by intra-group transactions? (d) What are the three steps we use to calculate total non-controlling interest?
- 1. Company S and Company T combine to form a new Company ST by pooling all their assets and liabilities and issuing new ST shares to all shareholders in proportion to their previous shareholdings. How this transaction should be categorised? a) Merger b) Acquisition c) Spin-off d) De-mergerDefine strategic alliance and joint venture, and explain whya company would choose these options over a merger oran acquisition.The goal of the consolidation process for A. The assets of the non-controlling interest to be predominantly displayed on the balance sheet. B. Asset acquisitions and 100% stock acquisition to result in the same balance sheet. C. Goodwill to appear on the balance sheet of the consolidated entity D. The investment in the subsidiary to be properly valued on the consolidated balance sheet.