Business, 17.06.2020 00:57 dwarfarmy99

On May 1, Donovan Company reported the following account balances:Current assets . . . . . . . . . . . . $ 90,000Buildings & equipment (net) . 220,000Total assets . . . . . . . . . . . .. . $310,000Liabilities . . . . . . . . . . . . . . . . $ 60,000Common stock . . . . . . . . . . . . . 150,000Retained earnings . . . . . . . . . 100,000Total liabilities and equities . $310,000On May 1, Beasley paid $400,000 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $15,000 in accounts payable for legal and accounting fees. Beasley also agreed to pay $75,000 to the former owners of Donovan contingent on meeting certainrevenue goals during the following year. Beasley estimated the present value of its probability adjustedexpected payment for the contingency at $20,000. In determining its offer, Beasley noted the following:∙ Donovan holds a building with a fair value $30,000 more than its book value. ∙ Donovan has developed unpatented technology appraised at $25,000, although is it not recordedin its financial records.∙ Donovan has a research and development activity in process with an appraised fair value of$45,000. The project has not yet reached technological feasibility.∙ Book values for Donovan’s current assets and liabilities approximate fair values. What should Beasley record as total liabilities incurred or assumed in connection with the Donovan merger?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 20:10

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost.refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account

Answers: 3

Answer

Business, 23.06.2019 00:40

An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. in this example, the manager exhibits: question 14 options: 1) class consciousness. 2) cultural awareness. 3) social mobility. 4) group orientation.

Answers: 3

Answer

Business, 23.06.2019 00:50

On december 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: accounts receivable, debit balance of $97,900; allowance for doubtful accounts, credit balance of $1,031. what amount should be debited to bad debts expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

Answers: 1

Answer

Business, 23.06.2019 01:30

How is systematic decision making related to being financially responsible

Answers: 1

Answer

You know the right answer?

On May 1, Donovan Company reported the following account balances:Current assets . . . . . . . . . ....

Questions