Lake incorporated purchased all of the outstanding stock of huron company paying $950,000 cash. lake assumed all of the liabilities of huron. book values and fair values of acquired assets and liabilities were: book value fair valuecurrent assets (net) $130,000 $125,000property, plant, equip. (net) 600,000 750,000liabilities 150,000 175,000lake would record goodwill of: a. $ 0.b. $ 75,000.c. $445,000.d. $250,000.

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Which of the following would be an accurate statement about achieving a balanced budget