Riverboat Adventures pays $420,000 plus $10,000 in closing costs to .pdf

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Riverboat Adventures pays $420,000 plus $10,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $61,600, a building appraised at $176,000, and paddleboats appraised at $202,400. Compute the cost that should be allocated to the building. $168,000. $172,000. $176,000. $252,960. $95,040. Riverboat Adventures pays $420,000 plus $10,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $61,600, a building appraised at $176,000, and paddleboats appraised at $202,400. Compute the cost that should be allocated to the building. Solution $176,000.

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Ross and Rachel have just tied the knot. The probability that they are happy each day depends on whether they were happy or sad during the last two days, in the following fashion: Last two days Happy Sad HH [ .8 .2 ] HS | .5 .5 | SH | .7 .3 | SS [ .4 .6 ] For example, if the newlyweds were sad two days ago and yesterday they were happy, then there is a 70% chance they will be happy tomorrow and a 30% chance they will be sad tomorrow. On what fraction of days will Ross and Rachel be happy? Solution The probability of Ross and Rachel to be happy during a day is 7/10.

Ross and Rachel have just tied the knot. The probability that they.pdf

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Rory, Elyse, Jason, Jodi, and Sarah are each going to host a class party after each exam. The host for each party will be randomly selected to give a party after each one of the five exams. If Elyse and Jodi are roommates, what is the probability that parties for these two students are back to back? Solution number of ways to give parties: 5x4x3x2x1 = 5! =120 number of ways to give parties for Elyse and Jodi back to back: 2*4! = 48 probability = 48/120 = 2/5 = 0.4.

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Rose Corporation acquired 100 percent of Lilly Company’s outstanding common stock on January 1, for $880,000 in cash. Lilly reported net assets with a carrying amount of $560,000 at that time. Some of Lilly’s assets had fair values that differed from book values as follows: Book Values Fair Values Trademarks (indefinite life) $ 96,000 $ 256,000 Customer relationships (5-year life) 0 120,000 Equipment (10-year life) 547,200 499,200 Rose computed income from Lilly using the Equity Method. Following are financial statements at the end of the first year for these two companies prepared from their separately maintained accounting systems. Credit balances are indicated by parentheses. Rose Lilly Revenues $ (1,800,000) $ (832,000) Cost of goods sold 480,000 364,800 Depreciation expense 120,000 112,000 Amortization expense 40,000 0 Income from Lilly (336,000) 0 Net income $ (1,496,000) $ (355,200) Retained earnings 1/1 $ (1,120,000) $ (400,000) Net income (1,496,000) (355,200) Dividends paid 227,200 128,000 Retained earnings 12/31 $ (2,388,800) $ (627,200) Cash $ 296,000 $ 168,000 Receivables 360,000 89,600 Inventory 280,000 216,000 Investment in Lilly 1,088,000 0 Trademarks 758,400 96,000 Customer relationships 0 0 Equipment (net) 1,480,000 435,200 Goodwill 0 0 Total assets $ 4,262,400 $ 1,004,800 Liabilities $ (1,233,600) $ (217,600) Common stock (640,000) (160,000) Retained earnings 12/31 (2,388,800) (627,200) Total liabilities and equity $ (4,262,400) $ (1,004,800) Determine the amount of Amortization Expense to be reported for this business combination for the year ending December 31. Determine the amount of Depreciation Expense to be reported for this business combination for the year ending December 31. Determine the amount of Income from Lilly to be reported for this business combination for the year ending December 31. Determine the amount of Dividends Paid to be reported for this business combination for the year ending December 31. Determine the amount of Reatained Earnings to be reported for this business combination at December 31. Rose Corporation acquired 100 percent of Lilly Company’s outstanding common stock on January 1, for $880,000 in cash. Lilly reported net assets with a carrying amount of $560,000 at that time. Some of Lilly’s assets had fair values that differed from book values as follows: Solution (a) Amortization Total amortization expense for the business combination = Amortization of Rose + Amortization expense of Lilly (Book value) + Amortization expense of Lilly for Fair value adjustment. Fair value adjustments: a. Customer relationship = $120,000 / 5 = $24,000 So, Amortization Expense = $40,000 + 0 + $24,000 = $64,000 (2) Depreciation Total Depreciation expense for the business combination = Depreciation of Rose + Depreciation expense of Lilly (Book value) + Depreciation expense of Lilly for Fair value adjustment. Fair value adjustments: a. Equipment = $(499,200 - 547,200) / 10 = - $4,800 So, Depreciation Expense = $12.

Rose Corporation acquired 100 percent of Lilly Company’s outstanding.pdf

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Romeo and Juliet plan to meet each other at the Theta Pond on the Valentine’s Day. Assume that they arrive independently at random times between 5:00 pm and 6:00 pm (uniform distribution), and due to the cold weather, they agree not to wait more than 20 minutes for the other. (a) Find the probability that they will meet. (b) If Romeo arrives first, and Juliet arrives within 20 minutes (they meet each other!), find Romeo’s expected waiting time under these conditions. (c) Forget the conditions in (b), find Romeo’s overall expected waiting time. Solution a)probality = 20/60 =1/3 b) expected waiting =20 minute c) oveall waitin = 60-20 =40.

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ROA2 The net profit margin for a company is 26.2 %, the asset turnover is 0.877, the equity multiplier is 1.573, and the dividend payout rate is 19 %. What is the return on assets? Show Your Work! (Answer to the nearest tenth of a percent, i.e. 12.3 without the % sign). Solution Net profit margin = Net profit / Sales = 0.262 Asset turnover = Sales / Assets = 0.877 times Therefore Return on assets = Net profit / Assets = Net profit margin x Asset turnover = 0.262 x 0.877 = 0.2297 or 22.9% or 23% approx.

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Robert Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances related to this plan: As a result of the operation of the plan during 2014, the actuary provided the following additional data at December 31, 2014: Instructions: (a) Compute pension expense for Robert Corp. for the year 2014 by preparing a pension worksheet that shows the journal entry for pension expense. (b) Indicate the pension amounts reported in the financial statements.Plan assets (market related value$170,000Projected benefit obligation$340,000Pension asset/liability$170,000 cr.Prior service cost$100,000OCI-Loss$39,000 Solution Interest cost = Beginning PBO × Interest rate = $340,000 × 7% = $23,800 Service cost = $45,000 Expected returns on pension fund = Beginning plan assets × Expected rate = $170,000 × 8% = $13,600 Net pension expense = Interest cost + Service cost – Expected returns on pension fund = $23,800 + $45,000 - $13,600 = $55,200 a. Journal Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense b. Pension expense $55,200 should be reported in the income statement of 31/12/2014. Balance sheet items would as below: Projected benefit obligation (31/12/2014) = Beginning PBO + Service cost + Interest cost – Retirement benefits paid = $340,000 + $45,000 + $23,800 - $51,000 = $357,800 Fair value (31/12/2014) = Beginning fair value + Employer contribution – Retirement benefits paid + Actual returns = $170,000 + $85,000 - $51,000 + $27,000 = $231,000 Date Account titles P.ref Debit Credit 31/12/14 Pension expense $55,200 Pension related asset/liability $55,200 To record 2014 pension expense.

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