On January 1, 2015, Alda Solutions paid $200,000 to acquire Fancy Phones, Inc, an electronic gadget-advertising website
At the time of the acquisition, Fancy Phone's balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Fancy Phone's assets was $200,000. The fair market value of its liabilities was $100,000. At the end of 2018, goodwill was measured, and its fair value was determined to be $60,000. Record the impairment of goodwill.
What will be an ideal response
Impairment Loss 40,000
Goodwill 40,000 .Purchase price to acquire Fancy Phones $200,000
Market value of Fancy Phones's assets $200,000
Less: Market value of Fancy Phones's liabilities 100,000
Less: Market value of Fancy Phones's net assets 100,000
Goodwill $100,000
Impairment Loss = $100,000 - $60,000 = $40,000
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Reuter Bank loaned Sabean Corporation $500,000 in writing. As part of the agreement, Reuter required that the three owners of Sabean act as sureties on the loan. The corporation also required that some real estate owned by Sabean Corporation be used as collateral for 40% of the loan. The collateral and suretyship agreements were put in writing and signed by all relevant parties. When the $500,000 loan became due, which of the following rights does Reuter Bank have?
I. May demand payment of the full amount immediately from the sureties when the corporation defaults on the loan. II. May demand payment of the full amount immediately from the sureties even if Reuter does not attempt to recover any amount from the collateral. III. May attempt to recover up to $200,000 from the collateral and the remainder from the sureties, even if the remainder is more than $300,000. IV. Must first attempt to collect the debt from Sabean Corporation before it can resort to the sureties or the collateral. A. I and III only. B. II only. C. I, II, and III only. D. IV only.
The marketing concept philosophy emphasizes the need to have a:
A) price advantage. B) unique product. C) sustainable strategy. D) customer focus.