A tax advantage of business combination can occur when the existing owner of a company sells out and receives: a. cash to defer the taxable gain as a “tax-free reorganization” b. stock to defer the taxable gain as a “tax-free reorganization” c. cash to create a taxable gain d. stock to create a taxable gain 2. Publics Company acquired the net assets of Citizen Company during 20X9. The purchase price was $800,000. On the date of the transaction, Citizen had no long-term investments in marketable equity securities and $400,000 in liabilities. The fair value of Citizen assets on the acquisition date was as follows: |Current assets |$ 800,000 | |Noncurrent assets | 600,000 | | |$1,400,000 | How should Publics account for the $200,000 difference between the fair value of the net assets acquired, $1,000,000, and the cost, $800,000?
Mr. Clarkson thought that a loan of this size would improve profitability by allowing him to take full advantage of trade discounts. Subsequent to this discussion, Mr. Dodge had arrange for the credit department of the Northrup National Bank to investigate Mr. Clarkson and his company. The Clarkson Lumber Company had been founded in 1981 as a partnership by Mr. Clarkson and his brother-in-law, Henry Holtz. In 1994, Mr. Clarkson bought out Mr. Holtz’s interest for $200,000.
• having liability exposure similar to that of a sole proprietor. • being taxed like a corporation. • being taxed like a corporation with liability like a partnership. 4. Which one of the following is least apt to help convince managers to work in the best interest of the stockholders?pay raises based on length of service • implementation of a stock option plan • threat of a proxy fight • management compensation tied to the market value of the firm’s stock • threat of a takeover of the firm by unsatisfied stockholders 5. a. Compute the future value of $2,000 compounded annually for 20 years at 4 percent.
27 Sold 1,200 shares of Black and Decker at $49.25 less a $735 commission. June 2 Purchased 2,500 shares of Merck stock at $72.50 per share plus a $3,890 brokerage fee. 14 Purchased 900 shares of Wal-Mart at $50.25 per share plus a $1,082 commission. 2004 Transactions in Trading Securities Jan. 28 Purchased 2,500 shares of Dell Co. stock at $39.50 per share plus a $2,356 commission. 31 Sold 2,500 shares of Merck at $71.25 per share less a brokerage commission of $2,356.
The bonus was determined by performance against a number of team-based measures including business development, client satisfaction, and productivity. While Schwab initially attracted customers who felt they had been "burned" by traditional full-service brokers, by 1982 they had grown to $54.0 million dollars in revenues. In 1983 BankAmerica bought Schwab for $57.0 million. However, they did not own them long due to Schwab's go-go entrepreneurial culture which clashed with BankAmerica culture.. Schwab lead a $280 million dollar management buyout of the firm from BankAmerica in 1987. Then in 1988 Schwab went public.
Anheuser-Busch InBev would be making an annual revenue of $36 Billion, which still would leave the company with a little over 2 years for the break even point. What is a friendly takeover? Speculate as to why it may have turned hostile? A situation in which a target company's management and board of directors agree to a merger or acquisition by another company. In a friendly takeover, a public offer of stock or the acquiring firm makes cash, and the board of the target firm will publicly approve the buyout terms, which may yet be subject to shareholder or regulatory approval.
Jack and Herman then began looking over the books for the fiscal 2010 year, confirming that at the end of the year there was a $100,000. profit that was paid to Herman Granger by check dated June 30, 2010. Jack also wanted to look over the books for 2011 but Herman stated that they were still at the accountant’s and he would have to show them to Jack at some other time. They then began discussing the physical
Quiggly Company Case The data below pertain to the Quiggly Company for year 2012: |Selling price per unit |$ | 3.50 | | |Total fixed manufacturing cost |$ |11,800,000 | | |Total fixed marketing and administrative cost |$ | 1,800,000 | | |Variable manufacturing cost per unit |$ | 2.00 | | |Variable marketing and administrative cost per unit |$ | 0.85 | | |Sales in units | |20,000,000 | | |Production in units | |20,000,000 | | |Operating loss |$ | 600,000 | | The company uses actual costing - absorption costing in preparing income statements. After sustaining this $600,000 loss, the board of directors approached a competent outside executive to take over the company. He is an optimistic soul and agreed to become president at a token salary. His contract provides for a year-end bonus amounting to 10% of operating income (before considering the bonus or income taxes.) The annual income is to be certified by a public accounting firm.
(GymInsight.com) The year 2013 alone collected over two hundred million in new membership sells with golds and the other gyms listed slowly behind. LA fitness offers great deals as in if singing up with a whole it could mean even better deals, a normal membership sale is $29.99 a month with a initiation fee, but prices could vary based on money issues with potential cliental. But great deals as in if signing up a family on could extract the initiation fee completely & bring down the monthly payment to a flat rate of 20 dollars sometimes even less. LA fitness also provides members who would pay a little more monthly to receive guest privileges
I broke the analysis into two sections. First compiling data for all customers and then targeting only the affluent customers. Based on the calculation for all customers, within the 2 year benchmark not only would the launch of the credit card pass the most critical criteria; generating a profit of €5milion, but they would do almost double this target by generating €9,345,195.37 and need only 151,074 customers in order to breakeven. Within year 1, the bank would see profits of €16, 8418 which should be good news for senior management. If the bank chooses to target only the affluent customers, they would create a €7,938,198 profit within 2 years; however, they would be at a €204,916 loss in the first year.