Pellew Corp. paid $600,000 for all of the outstanding common stock of Samos Co. in a business combination initiated and completed in December. At that time, Samos had the following condensed balance sheet: Current assets: $80,000 Plant and equipment, net: 760,000 Liabilities: 400,000 Equity: 440,000 The acquisition-date fair value of the plant and equipment was $120,000 more than its carrying amount. The acquisition-date fair values and carrying amounts were equal for all other assets and liabilities. What amount of goodwill, related to Samos’s acquisition, must Pellew report in its December 31 consolidated balance sheet?

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000