Purchase reflected in recording an acquisition transaction

Purchase reflected in recording an acquisition transaction

Q1. How are direct combination costs, contingent consideration, and a bargain purchase reflected in recording an acquisition transaction?
Q2. On January 1, 2016, ATM Corporation acquired all of the common stock of ZED Company for $300,000. On that date, ZED’s identifiable net assets had a fair value of $250,000. The assets acquired in the purchase of ZED are considered to be a separate reporting unit of ATM Corporation. The carrying value of ZED’s investment at December 31, 2016, is $310,000. The fair value of the net assets (excluding goodwill) at that date is $220,000 and the fair value of the reporting unit is determined to be 260,000.
Required:
1) Explain how goodwill is tested for impairment for a reporting unit.
Q3. Brell Corporation manufactures umbrellas. The cloth used in one umbrella costs $ 15. The corporation rents a manufacturing factory for a monthly rent of $ 275. Prepare a table showing the Total Fixed Cost, Total Variable cost, Total Cost and Average Fixed Cost, Average Variable Cost, and Average Cost for three different levels of production. (No. of units at three different levels can be chosen by you).

Q4. A supplier sells company B raw materials at $ 10/unit for the first 500 units, $ 9/unit for the second 500 units and at $8.5/unit for more than 1000 units.
Which type of cost behavior you have in this case? Explain with graphical representation.

Purchase reflected in recording an acquisition transaction

Sample Solution

 

‘can be applied to another context’) is also important rather than deducing from a sample (Laher & Botha, Purchase reflected in recording an acquisition transaction  2012: 94). My findings using the sample which is East Asian postgraduate students and the teachers in the UK could be applied to another countries’ ESL learners, another levels of learners, or in another counties. Therefore, it can be said that this sample would lead me to ‘the transferability of results’ (Laher & Botha, 2012: 94). I will choose a few people first and condu Purchase reflected in recording an acquisition transaction ct the interview then after analysing the data of first people’s interviews, I will interview other people. This iterative process would work effectively because I could recognise which issues most become the topic of the interview question by getting ‘repetitive data’ (Laher & Botha, 2012: 89). Regarding the contact with the interviewees, the sample I will interview is my old classmates and teachers as I mentioned above, so it is possible to contact them easily because we are in the same place. I will use ‘purposive sampling’ which is one of ‘non-probability sampling’ when I choose sample from East Asian postgraduate students at University of Roehampton and their teachers (Laher & Botha, 2012: 92-93). This sample would not take so much time and money unlike ‘probability sampling’ (Laher & Botha, 2012: 89). In addition, in order to collect ‘purposive sampling’, I would judge individuals based on my experience to decide who would be the best and who would annoy me as a sample(Laher & Botha, 2012: 93). Dörnyei (2011) says that interviews are a practicable way even for a beginner researcher, but it is also time-consuming. Besides, it might be difficult to deal with each participants characters. For example, some interviewees might be too shy and they cannot tell me useful data. Others might talk too much though most of their data i Purchase reflected in recording an acquisition transaction s useless. However, these problems would unlikely happen by using ‘purposive sampling’ (Laher & Botha, 2012: 93). Another possible consideration of this sample is that the interviewees are postgraduate students who have been lived in the UK for more than 6 month. If I conduct interviews to the beginner EFL learners or to the postgraduate students soon after they came to the UK, the answers will be different. Analysis I would like to find East Asian postgraduate students’ attitude towards speaking English when they first came to the UK and the factors why they had/did not hav Purchase reflected in recording an acquisition transaction e confidence or felt/did not feel that they speak English fluently. By getting data from two sides East Asian students themselves and their teachers, I will be able to analyse them objectively. Thematic analysis and dis Purchase reflected in recording an acquisition transaction course analysis will be possible to analyse data in this research.>

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