Business, 03.09.2019 18:10 SassyBanana

Powell company buys all of the outstanding common shares of south bay company on january1 in the year of acquisition for $1,500,000 cash and uses the acquisition method. if a contingent cash payment is a portion of the negotiated fair value of this acquisition, how will changes in the revaluation of the contingent performance payment affect the future financial statements? changes from the revaluation are reported in the income statement as ordinary income. revaluations affect the acquisition price and are recorded in the investment in south bay account. changes from the revaluation are reported as prior period adjustments and affect retained earnings. revaluations in contingent performance payments are recorded in apic—contingent equity outstanding. revaluations do not effect the future financial statements.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 01:00

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

Answers: 2

Answer

Business, 22.06.2019 01:30

Claire wants to include animations in her presentation slides. which element of the presentation program’s interface will have the options for animation? claire should use the to include animations in her presentation slides.

Answers: 1

Answer

Business, 22.06.2019 08:00

Why do police officers get paid less than professional baseball players?

Answers: 2

Answer

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

You know the right answer?

Powell company buys all of the outstanding common shares of south bay company on january1 in the yea...

Questions