UNIT 7 STUDY UNIT 10 METHODS FOR THE VALUATION OF BUSINESS INTERESTS STUDY UNIT 11 THE VALUATION OF DIFFERENT KINDS OF BUSINESS INTERESTS STUDY UNIT 12 COMPREHENSIVE QUESTIONS AND ANSWERS PART III 76 74 65 LIQUIDATIONS‚ REORGANISATIONS‚ CONVERSIONS‚ MERGERS AND TAKEOVERS 77 LIQUIDATIONS 78 85 89 97 STUDY UNIT 13 STUDY UNIT 14 REORGANISATIONS STUDY UNIT 15 CONVERSIONS STUDY UNIT 16 MERGERS AND TAKEOVERS (iv) AIM OF THIS MODULE Once you have studied and completed this module‚ you should
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also mean that they were giving less use to their machinery‚ and that would cause less wear and tear to the machinery justifying and increase on the useful life of the asset. 5. In Note 7‚ Harnischfeger describes the effect of LIFO inventory liquidation on its reported profits in 1984. Describe what is meant by LIFO
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E & P purposes. Consequently‚ the entire gain is recognized in the year of sale. #5 In a complete liquidation (not a parent-subsidiary liquidation)‚ a shareholder typically recognizes dividend income equal to his or her share (i.e.‚ stock ownership percentage) of the liquidating corporation’s E & P. ANS: F Capital gain or loss is the typical result to a shareholder in a complete liquidation‚ based on the difference between the fair market value of the assets received in the distribution and
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L. L. Bean Case Study 1. Each catalog for L.L. Bean had a gestation period of about 9 months. Its creation included merchandising‚ design‚ product‚ and inventory specialists. The first step of its creation process is initial conceptualization followed by the preliminary forecasts of total sales. Then forecasts were developed by book. After the layout and pagination of the books‚ initial commitments to vendors were made. The subsequent step is that item forecasts were repeatedly revised and finally
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Financial Reporting & Analysis April 19th‚ 2013 Case Study- Harnischfeger Corporation 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. The accelerated depreciation method was changed from to straight-line on all company assets that caused to increase after-tax net income for 1984 by $11.005 million. The cumulative effect of change in 1984 there will
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12 M. & W. 191 [ 22 ] [ 23 ]. Goode R ‘Principles of Corporate Insolvency Law’‚ (4th edn Sweet & Maxwell London 2010) 190 [ 24 ] [ 27 ]. A.Keay‚ P. Walton‚ The Preferential Debts Regime in Liquidation Law: in the Public Interest? (1999) 3 C.F.I.L.R. 84 [ 28 ] [ 31 ]. J. Armour‚ A. Walters‚ Funding liquidation: a functional view L.Q.R. 2006‚ 122(Apr)‚ 295-326 [ 32 ] [ 37 ]. Chan Ho‚ Review article: Goode ’s swan song to corporate insolvency law E.B.L. Rev. 2006‚ 17(6)‚ 1727-1752
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Gulf Oil Corp.--Takeover Summary of Facts o George Keller of the Standard Oil Company of California (Socal) is trying to determine how much he wants to bid on Gulf Oil Corporation. Gulf will not consider bids below $70 per share even though their last closing price per share was valued at $43. o Between 1978 and 1982‚ Gulf doubled its exploration and development expenses to increase their oil reserves. In 1983‚ Gulf began reducing exploration expenditures considerably due to declining oil prices
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AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF VIRTUAL ZONE‚ INC. The undersigned‚ being the Executive Vice President‚ Law and Administration‚ and General Counsel and the Secretary of NEW PLAYBOY‚ INC. (the "Corporation")‚ a corporation organized and existing under the laws of the State of Delaware‚ do hereby certify as follows:
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the business conditions Harnischfeger was facing in its primary industries in 1984‚ are these economic assumptions justified? 5. In Note 7‚ Harnischfeger describes the effect of LIFO inventory liquidation on its reported profits in 1984. Describe what is meant by LIFO liquidation and how liquidation affects a company’s income statement and balance sheet. 6. Note 8‚ states Harnischfeger’s allowance for doubtful accounts. Compute the ratio of the allowance to gross receivables (receivables
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Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. • Based on the financial statements in 1984 Harnischfeger made changes from the previous year‚ the corporation computed depreciation expenses on plants‚ machinery and equipment using the straight-line method. Prior to
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