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QUESTION 44 Jarrett is buying all the assets and assuming all the liabilities of Suzie Corporation. The following information is available for Suzie's at the date of the purchase: Accounts Receivable 250,000 Accounts payable 150,000 Inventory 100,000 Note Payable 100,000 Land 300,000 Common Stock 100,000 Retained Earnings 300,000 The accounts receivable are worth $200,000, the inventory is worth $80,000 and the land is worth $500,000. The Accounts Payable are worth book value. Additionally, the Note Payable debt is payable interest only at 10% per year for the next 5 years and then the principal is due. The current interest rate for similar debt is 12% Jarrett will pay $650,000 for Suzie's. Approximately, how much of the purchase price will Jarrett debit to goodwill? A. $ 117,790 B. $ 112,790 C. $ 120,000 D. Some other number which is not here E. $ 124,804 QUESTION 45 Freeland Company sells Popits for $20. The following is the projected Income Statement for 2018. Variable costs are the cost of the Popits, $10 each, plus a 10% sales commission paid to the worker. Sales $300,000 Cost of Popits Sold 150.000 Gross Margin 150,000 Operating Expenses Salaries and Commissions 60,000 Rent 24,000 Other Fixed Expenses 10,000 Total Operating Expenses 94.000 Net Income $ 56,000 For Freeland, the number of Popits she needs to sell to break even are A. 11,750 B. 8,000 C. 9,074 D. 6,620 E need more information to calculate this QUESTION 46 Still Freeland, the sales (in dollars) of popits necessary to make $120,000 per year is approximately: A. $405,500 B. $184,000 C. $174,000 D. $460,000 E. none of the listed choices

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