Asset acquisition vs. stock purchase (fair value equals book value) Assume that an investor purchases the business of an investee. The fair value of the investee company is equal to its reported book value and the fair values of the individual net assets are equal to their reported book values. The investee company reports the following balance sheet on the acquisition date: Cash $1,680 Accounts payable $3,360
Accounts receivable 3,360 Accrued liabilities 5,040
Inventories 6,720 -
Current assets 11,760 Current liabilities 8,400
Long-term liabilities 6,720
PPE, net 16,800 Stockholdersâ equity 13,440
Total assets $28,560 Total liabilities and equity $28,560

Required:
a. Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company.
b. Provide the journal entry if the investor pays cash and purchases all of the stock of the investeeâs shareholders.

Elephant, inc.'s cost of goods sold for the year is $2,000,000, and the average merchandise inventory for the year is $129,000. calculate the inventory turnover ratio of the company. (round your answer to two decimal places.)

Which type of data is generally stored in different file formats, such as text files, spreadsheets, and so on?

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation