subject
Business, 26.05.2021 17:00 Ackussinglake63

Charles Company acquired Jackson Company for $2,000,000 cash. At that time, the fair value of recorded assets and liabilities was $1,500,000 and $250,000, respectively. If Jackson meets specified sales targets, Charles is required to pay an additional $200,000 in cash per the acquisition agreement. Charles estimates the probability of this to be 50%. The direct costs related to the acquisition were $50,000. What was the amount of the goodwill related to the acquisition?​

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 02:50
Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of
Answers: 3
question
Business, 22.06.2019 15:20
Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.
Answers: 1
question
Business, 22.06.2019 18:00
Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?
Answers: 3
question
Business, 23.06.2019 00:00
How did the change in textile production affect employment in spinning and weaving for adults and children?
Answers: 1
You know the right answer?
Charles Company acquired Jackson Company for $2,000,000 cash. At that time, the fair value of record...
Questions
question
Mathematics, 29.01.2020 05:00
question
Biology, 29.01.2020 05:00
Questions on the website: 13722367