PDX Corp. acquired 100% of the outstanding common stock of Sea Corp. in a business combination accounted for using the acquisition method. The cost of the acquisition exceeded the fair value of the identifiable assets and assumed liabilities. The general guidelines for assigning amounts to the inventories acquired provide for

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

Explanation:

Acquisition Accounting tells about how to report accounts and with what amount in a consolidated financial statements. It also helps in assigning values to goodwill, NCI and combined business operations like Marketing, Selling, Manufacturing costs, etc.

Under Acquisition Accounting the net assets are always valued at their fair market value and the inventory is reported at:

Cost of Inventory = Selling Prices - Cost to Sell  -  Reasonable Profit Allowance

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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