Assume that an investor purchases 100% of an investee company for $32 million in a transaction that qualifies as a business combination. The fair values of the identifiable net assets are as follows: Tangible net assets: Receivables, inventories, PPE, payables, and accruals $10 million
Intangible assets: Patents, customer lists, trade name, software, etc. 7 million
Research and development assets: Research projects in process at the investee company 8 million
In addition to the purchase price, the investor also incurs acquisition-related costs amounting to $1.8 million for professional fees and the internal allocation of overhead relating to the purchase.
a. How much of the purchase price is assigned to Goodwill?
b. How do we account for Goodwill subsequent to the acquisition?
c. Given the accounting treatment for Goodwill subsequent to the acquisition, why might companies be motivated to increase the amount assigned to goodwill?

Exercise 4-6 the following balances were taken from the books of alonzo corp. on december 31, 2017. interest revenue $86,000 accumulated depreciation—equipment $40,000 cash 51,000 accumulated depreciation—buildings 28,000 sales revenue 1,380,000 notes receivable 155,000 accounts receivable 150,000 selling expenses 194,000 prepaid insurance 20,000 accounts payable 170,000 sales returns and allowances 150,000 bonds payable 100,000 allowance for doubtful accounts 7,000 administrative and general expenses 97,000 sales discounts 45,000 accrued liabilities 32,000 land 100,000 interest expense 60,000 equipment 200,000 notes payable 100,000 buildings 140,000 loss from earthquake damage 150,000 cost of goods sold 621,000 common stock 500,000 retained earnings 21,000 assume the total effective tax rate on all items is 34%. prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (round earnings per share to 2 decimal places, e.g. 1.48.)

The new york stock exchange is an example of what type of stock market?

In the 1970s, kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. a spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. over time, loyal kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. if kmart was employing classical conditioning techniques, what role did the spinning blue light play?