The financial balances for the atwood company and the franz company as of december 31, 2018, are presented below. also included are the fair values for franz company's net assets. atwood franz co. franz co. (all numbers are in thousands) book value book value fair value 12/31/2018 12/31/2018 12/31/2018 cash $ 870 $ 240 $ 240 receivables 660 600 600 inventory 1,230 420 580 land 1,800 260 250 buildings (net) 1,800 540 650 equipment (net) 660 380 400 accounts payable ( 570) ( 240) ( 240) accrued expenses ( 270) ( 60) ( 60) long-term liabilities (2,700) (1,020) (1,120) common stock ($20 par) (1,980) common stock ($5 par) ( 420) additional paid-in capital ( 210) ( 180) retained earnings (1,170) ( 480) revenues (2,880) ( 660) expenses 2,760 620 note: parenthesis indicate a credit balance assume an acquisition business combination took place at december 31, 2018. atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of franz. stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid. compute the amount of the consideration transferred by atwood to acquire franz. group of answer choices $1,750. $1,775 $1,300 $1,760 $1,120

Cooper, cpa, is auditing the financial statements of a small rural municipality. the receivable balances represent residents’ delinquent real estate taxes. internal control at the municipality is weak. to determine the existence of the accounts receivable balances at the balance sheet date, cooper would most likely: cooper, cpa, is auditing the financial statements of a small rural municipality. the receivable balances represent residents’ delinquent real estate taxes. internal control at the municipality is weak. to determine the existence of the accounts receivable balances at the balance sheet date, cooper would most likely:

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.