Mergers and acquisitions result in the consolidation of assets and liabilities of two companies under one entity. However, a merger and an acquisition are two different types of market activity. Which of the following best describes a merger? Select the correct answer below:

when an entity takes ownership of another entity's stock, equity interests, and assets

the consolidation of assets and liabilities under two entities

a legal consolidation of two entities into one entity

all of the above
PLEASE ANSWER ASAP

Answers

Answer 1

Answer:

Answer:

a legal consolidation of two entities into one entity

Related Questions

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Pina Corporation traded a used truck (cost $25,200, accumulated depreciation $22,680) for a small computer with a fair value of $4,158. Pina also paid $630 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)

Answers

Answer:

Calculation of Gain or Loss:

Book Value of Truck = 25,200 - 22,680

= $2,520

Gain on Exchange = 4,158 - 2,520 - 630

= $1,008

Therefore, the journal entry is as follows:

Accumulated Depreciation A/c Dr. $22,680

computer A/c Dr. $3,150

To Truck $25,200

To Cash $630

(To record the Truck)

An asset used in a four-year project falls in the five-year MACRS class for tax purposes The asset has an acquisition cost of $5,100,000 and will be sold for $1,600,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7 (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

$1,449,068.80

Explanation:

Book value on purchase $5,100,000

Less: Accumulated depreciation $4,218,720

(5,100,000*(0.2+0.32+0.192+0.1152)

Book value on sales $881,280

Salvage value of paint $1,600,000

Book value of as set $881,280

Gain on disposal $718,720

Tax on gain on disposal = $718,720 * 21% = $150,931.20

After tax cash flow = $1,600,000 - $150,931.20

After tax cash flow = $1,449,068.80

Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $27 per unit sold Advertising expense $184,000 per quarter Sales commissions 7% of sales Shipping expense ? Administrative salaries $94,000 per quarter Insurance expense $10,400 per quarter Depreciation expense $64,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Quarter Units Sold Shipping Expense Year 1: First 30,000 $ 174,000 Second 32,000 $ 189,000 Third 37,000 $ 231,000 Fourth 33,000 $ 194,000 Year 2: First 31,000 $ 184,000 Second 34,000 $ 199,000 Third 44,400 $ 246,000 Fourth 41,400 $ 222,000

Answers

Answer:

Fixed Cost = $24,000 Variable cost = $5

Explanation:

You have to use the High-Low method

$$$Shipping expense = units sold * variable cost + fixed cost$

From the table you got, you pick the higher and the lowest unit sold

and calculate the diference between them:

$\left[\begin{array}{ccc}&$Units&$Shipping Expense\n$High&44,400&246,000\n$Low&30,000&174,000\n$Diference&14,400&72,000\n\end{array}\right]$

Now 14,400 Units generates a cost of 72,000 Dividing we get the variable component

$72,000/14,400 = 5$

Then we calculate for the fixed cost:

$$$246,000 = 44,400 * 5 + Fixed Cost$

Fixed Cost = 24,000

A project that provides annual cash flows of $2,700 for nine years costs $8,800 today.Requirement 1:A. At a required return of 9 percent, what is the NPV of the project?
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?

Answers

Answer:

A. $8,187.17

B. $597.38

C. 30%

Explanation:

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000) CFj

$2,700 CFj

9.00 % i/yr

Shift NPV $8.187.1666 or $8,187.17

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000) CFj

$2,700 CFj

28.00 % i/yr

Shift NPV $597.3765 or $597.38

You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.

Use the Data given to find the Internal Rate of Return :

($8,000) CFj

$2,700 CFj

Shift IRR 30%

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.The following data appear in the company records for the current period:Maintenance Personnel Printing DevelopingMachine-hours — 1,700 1,700 5,100 Labor-hours 700 — 700 2,800 Department direct costs $ 2,400 $ 12,400 $ 14,100 $ 11,000 Required:Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Answers

Answer: a. $600 Maintenance costs to Printing

$1,800 Maintenance costs to Developing

b. $2,480 Personnel costs to Printing

$9,920 Personnel costs to Developing

Explanation:

The Direct method as mentioned, allocates the service department costs to the Operating Departments.

Overheads from the Service Departments will not be allocated to the each other. In other words, Maintenance costs will not be allocated to Personnel and Vice Versa.

a. Allocating Maintenance Costs

Maintenance Cost is $2,400 which is to be allocated on the basis is machine hours.

Printing had 1,700 in Machine hours.

Their allocation is,

= 1,700 / ( total machine hours in the two operating Department) * $2,400

= 1,700 / (1,700 + 5,100) * 2,400

= 1,700 / 6,800 * 2,400

= $600 Maintenance costs to Printing

Developing had 5,100 machine hours

= 5,100 / 6,800 * 2,400

= $1,800 Maintenance costs to Developing

b. Allocating Personnel Costs

Maintenance Cost is $12,400 which is to be allocated on the basis is labour hours.

Printing had 700 in labor hours.

Their allocation is,

= 700 / ( total machine hours in the two operating Department) * $12,400

= 700 / ( 700 + 2,800) * 12,400

= 700 / 3,500 * 12,400

= $2,480 Personnel costs to Printing.

Developing had 2,800 machine hours.

= 2,800 / 3,500 * 12,400

= $9,920 Personnel costs to Developing

Carruthers Company expects the following total sales:Month Sales
March $29,000
April $19,000
May $25,000
June $24,000
The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 67% in the month following the sale with the remainder being uncollectible and written off in the month following the sale. The budgeted accounts receivable balance on May 31 is:
a. $22,320.
b. $18,750.
c. $13,125.
d. $11,725.

Answers

Answer:

Option (c) is correct.

Explanation:

It is assumed that all the sales cash and credit up to the month of April will be adjusted before 31st may.

Any receivables remaining as on 31st May are related to the sales of May only.

May Sales = $25,000

Out of which Cash sales adjusted in the same month:

= 30% of May sales

= 30% × 25,000

=$7,500

Remaining credit sales:

= May sales - Cash sales

= $25,000 - $7,500

= $17,500

Out of which 25% i.e. $4,375 received in May only.

The budgeted accounts receivable balance on May 31 is:

= Remaining credit sales - Received 25% in May

= 17,500 - 4,375

= $13,125

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