Business, 12.12.2019 22:31, taylabrown2013
Harrison, inc. acquires 100% of the voting stock of rhine company on january 1, 2010 for $400,000 cash. a contingent payment of $16,500 will be paid on april 15, 2011 if rhine generates cash flows from operations of $27,000 or more in the next year. harrison estimates that there is a 20% probability that rhine will generate at least $27,000 next year, and uses an interest rate of 5% to incorporate the time value of money. the fair value of $16,500 at 5%, using a probability weighted approach, is $3,142.
what will harrison record as its investment in rhine on january 1, 2010?
a.
$400,000.
b.
$403,142.
c.
$406,000.
d.
$409,142.
e.
$416,500.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 07:30, mdndndndj7365
Which of the following best describes why you need to establish goals for your program?
Answers: 3
Business, 22.06.2019 11:30, astorkid
Mark knopf is an auditor who has been asked to provide an audit and financial statement certification for a company that is going public on the new york stock exchange. knopf wants to know his personal liability if the company provides him with inaccurate or false information. which of the following sources of law will him answer that question? a. the city ordinances where the company headquarters is located. b. the state constitution of the state where the company is incorporated. c. code of federal regulations. d. all of the above
Answers: 1
Business, 22.06.2019 11:40, thedarcieisabelleand
Select the correct answer. which is a benefit of planning for your future career? a. being less prepared after high school. b. having higher tuition in college. c. earning college credits in high school. d. ruining your chances of having a successful career.
Answers: 2
Business, 22.06.2019 18:00, judali
David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?
Answers: 1
Do you know the correct answer?
Harrison, inc. acquires 100% of the voting stock of rhine company on january 1, 2010 for $400,000 ca...
Questions in other subjects:
History, 19.02.2020 01:53
Biology, 19.02.2020 01:53
