The following book and fair values were available for westmont company as of march 1. book value fair value inventory $ 281,500 $ 250,000 land 805,500 1,112,250 buildings 2,070,000 2,416,500 customer relationships 0 870,000 accounts payable (82,500 ) (82,500 ) common stock (2,000,000 ) additional paid-in capital (500,000 ) retained earnings 1/1 (421,500 ) revenues (446,000 ) expenses 293,000 arturo company pays $3,960,000 cash and issues 29,500 shares of its $2 par value common stock (fair value of $50 per share) for all of westmont’s common stock in a merger, after which westmont will cease to exist as a separate entity. stock issue costs amount to $29,400 and arturo pays $50,000 for legal fees to complete the transaction. prepare arturo’s journal entry to record its acquisition of westmont

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600