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On April 1, 20X1, Paape Company paid $950,000 for...




On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation. The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow: Cash $ 80,000 Inventory 240,000 Property and equipment (net of accumulated depreciation of $320,000) 480,000 Liabilities (180,000) On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000. What is the amount of goodwill resulting from the business combination? (Points : 10) $0 $120,000 $300,000 $230,000,Not you again, I failed two tests because of you!!,very good that is what I got here is another question. Partners A and B have a profit and loss agreement with the following provisions: salaries of $41,600 and $38,400 for A and B, respectively; a bonus to A of 10% of net income after salaries and bonus; and interest of 10% on average capital balances of $20,000 and $35,000 for A and B, respectively. One-third of any remaining profits are allocated to A and the balance to B. If the partnership had a net income of $36,000, how much should be allocated to Partner A, assuming that the provisions of the profit and loss agreement are ranked by order of priority starting with salaries? (Points : 10) $12,000 $18,000 $18,720 $41,600


Paper#11301 | Written in 18-Jul-2015

Price : $25