Question 27 of 34 Consider the following Purchase Price Allocation schedule for this same M&A deal: Purchase Price Allocation: Goodwill Calculation: Equity Purchase Price: (-) Seller Book Value: (+) Write-Off of Existing Goodwill: Total Allocable Purchase Premium: (-) Write-Up of PP&E: (-) Write-Up of Intangibles: (-) Write-Down of Deferred Tax Liabilities: (+) New Deferred Tax Liability: Total Goodwill Created: $ 2,000.0 (500.0) 100.0 Fixed Asset Write-Up: PP&E Write-Up %: PP&E Write-Up Amount: Depreciation Period (Years): 10.0% $ 20.0 8 Intangible Asset Write-Up: Purchase Price to Allocate: (40.0) % Allocated to Indefinite-Lived Intangibles: Indefinite-Lived Intangibles: 30.0% % Allocated to Definite-Lived Intangibles: Intangibles Write-Up Amount: 5.0% Amortization Period (Years): New Deferred Tax Liability: Based on this schedule above, please calculate the Goodwill created in this deal. Assume a 25% tax rate. A $1,020. B $1,005. C $980. D $1,125. 5
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Use the following information to answer the next six questions: All balances are as of 12/31/2017 unless specified otherwise. Loss on the Sale of Equipment 62,250 Income Tax Expense 48,750 Short Term Investments 1,500 Inventory 97,500 Retained Earnings, 1/1/17 281,000 Gain on Sale of Equipment 27,500 Goodwill 50,000 Cost of Goods Sold 204,000 Common Stock ??? Notes Payable 5/1/18 12,500 Cash 70,000 Sales Revenue 447,500 Accumulated Depreciation 50,000 Dividends 10,000 Notes Payable, due 12/31/19 104,500 Prepaid Expenses 2,500 Furniture 83,000 Accrued Expenses 28,000 Equipment 372,500 Accounts Receivable 42,000 Operating Expenses 43,000 Accounts Payable 36,000 Working Capital as of December 31, 2017. 137,000 Retained Earnings and Cash as of 12/31/2017. D. Retained Earnings $388,000 Cash $70,000 Total Liabilities as of 12/31/2017. E. $181,000 Income from Operations for 2017. $200,500 Determine the Total Assets as of 12/31/2017. A. $719,000 B. $769,000 C. $679,000 D. $669,000 E. $696,500 QUESTION 10 Determine the Profit Margin for the year ended December 31, 2017. A. 26% B. 37% C. 54% D. 382% E. $243,500
Supreeta N.
Lightspeed Industries Balance Sheet As of December 31, 2021 (amounts in thousands) Cash: 141,000 Accounts Payable: 19,000 Accounts Receivable: 32,000 Debt: 36,000 Inventory: 49,000 Other Liabilities: 20,000 Property Plant & Equipment, Gross: 231,000 Total Liabilities: 75,000 Accumulated Depreciation: 68,000 Paid-In Capital: 72,000 Property Plant & Equipment, Net: 163,000 Retained Earnings: 243,000 Other Assets: 5,000 Total Equity: 315,000 Total Assets: 390,000 Total Liabilities & Equity: 390,000 Lightspeed Industries Balance Sheet As of March 31, 2022 (amounts in thousands) Cash: 145,000 Accounts Payable: 26,000 Accounts Receivable: 37,000 Debt: 32,000 Inventory: 45,000 Other Liabilities: 18,619 Property Plant & Equipment, Gross: 231,000 Total Liabilities: 76,619 Accumulated Depreciation: 68,600 Paid-In Capital: 72,000 Property Plant & Equipment, Net: 162,400 Retained Earnings: 245,781 Other Assets: 5,000 Total Equity: 317,781 Total Assets: 394,400 Total Liabilities & Equity: 394,400 Revenue and expenses information from January 1 to March 31, 2022 were: Sales Revenue: $9,200,000 COGS: 25% of Sales Interest: $190,000 Other Expenses: $300,000 SG&A: $920,000 Tax Rate: 37% What is the net income in the first quarter of 2022? Note: Revenue and expense amounts are provided in dollars but the financial statement units are thousands of dollars. Round the income taxes amount to the nearest integer when you apply the tax rate. Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed income statement).
Akash M.
Use the following information for this and the next four questions. You are given the following for TG Inc. for the last year: Sales: $26,500 Cost of goods sold: $18,850 Depreciation expense: $2,900 Interest expense: $400 Selling, general, and administrative expense: $250 Dividends paid: $16,000 New debt issued: $500 Beginning Net fixed assets: $12,400 Beginning Current assets: $2,600 Beginning Current liabilities: $2,250 Ending Net fixed assets: $15,250 Ending Current assets: $3,890 Ending Current liabilities: $2,650 Tax rate: 40% What was its last year's net income? A. $2,610 B. $4,500 C. $5,910 D. ($730) E. ($100) F. $2,460 What was the TG Inc.'s operating cash flow last year? A. $8,350 B. ($730) C. $7,400 D. ($100) E. $5,760 F. $2,610 What was the TG Inc.'s cash flow from assets last year? A. ($780) B. ($880) C. ($100) D. $5,750 E. $5,910 F. $2,610 What was the TG Inc.'s cash flow to creditors last year? A. $5,910 B. $5,750 C. ($780) D. ($100) E. $2,610 F. ($880) What was the TG Inc.'s cash flow to stockholders? A. ($100) B. $5,750 C. ($880) D. $2,610 E. ($780) F. $5,910
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