A business combination involves a contingent consideration. It is considered 80% probable that a payment of $700,000 will become payable three years after the acquisition date. Using a 5% discount rate, what liability should be recorded for the contingent consideration on the acquisition date? Multiple Choice   $700,000   $560,000   $483,749   $604,686

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urrent Attempt in Progress Assume that Henry Corporation has a contractual debt outstanding. Henry has available two means of settlement: It can either make immediate payment of $1,485,000, or it can make annual payments of $195,000 for 10 years, each payment due on the last day of the year. Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 9% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present Value of annual payments Recommended payment method $

Company A borrows $2 million at Libor + 3% for five years and Company B takes a $2 million five-year loan at a fixed 7% interest rate. The two companies enters into an interest rate swap arrangement, where Company A will pay Company B a fixed 6% interest rate on a notional $2 million and Company B will pay Company A Libor + 2% on a notional $2 million. What has been accomplished?   Question 16 options:   Both companies have been able to link the payment to Libor   Company A has achieved payments mirroring a fixed interest rate while Company B will be paying a floating rate   Company A has achieved payments mirroring a floating interest rate while Company B has achieved a fixed rate   Both companies will be paying the same interest rate for the duration of the loan

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Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $176,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $44,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a.   The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place.fill in…

Blossom Company is considering the acquisition of Splish, Inc. To assess the amount it might be willing to pay, Blossom makes the following computations and assumptions. A. Splish, Inc. has identifiable assets with a total fair value of $6,014,000 and liabilities of $3,728,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Splish, Inc. B. Splish, Inc's pretax incomes for the years 2020 through 2022 were $470,600, $572,300, and $371,100, respectively. Blossom believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments for the following items included in pretax earnings: Depreciation on Buildings (each year) 384,800 Depreciation on Equipment (each year) 31,100…