1) world corporation is buying all the assets and assuming all the liabilities The following information is available for Maxton at the day of the purchase:
cash 300,000 Accounts payable 50,000
Accounts Rec 100,000 Bond payable 100,000
Inventory 100,000 Common stock 200,000
Land 300,000 Retained Earnings 250,000
The inventory is worth $50,000 and the land is worth $500,000. Additionally, the Bond Payable debt is payable interest only at 10% per year for the next 5 years and then the principal is due. Current interest rates for similar debt is 8%. World Corp will pay $1,000,000 for Maxton. How much of the purchase price will World Corp debit to good will?
2) Shyam wants to calculate how much money he will get after 2 years at a rate of interest of 10% p.a. computed half-yearly on a sum of money of $ 5000?
Please provide the correct answer for both.