Order Number |
354573092 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
Discuss the uses of the quoting of the forward rate.
3b) A Kenyan firm has imported goods from Uganda and it has been invoiced Ush.600 million in 6 months. The exchange rates are as follows
Ush. (Spot rate) 24.75 25.25
6 months forward premium 1.10 1.25
Required:
Determine the 6 months forward exchange rate
Determine the amount to be paid by the Kenyan firm in 6 months in KS.
Purchase Price Amortization Accounting Questions
here is one of the questions
Presented below is net asset information related to the Matlock Division of Santana, Inc.
Matlock Division Net Assets As of December 31, 2020 (in millions) |
|||
Cash | $54 | ||
Accounts receivable | 203 | ||
Property, plant, and equipment (net) | 2,598 | ||
Goodwill | 204 | ||
Less: Notes payable | (2,593 | ) | |
Net assets | $466 |
The purpose of the Matlock Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $425 million. Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable assets and liabilities’ book and fair value amounts are the same.
Prepare the journal entry to record the impairment at December 31, 2020.
At December 31, 2021, it is estimated that the division’s fair value increased to $346 million. Prepare the journal entry to record this increase in fair value.