Gribble Corporation Acquires the Dibble Corporation for $7,200,000

question 47

Multiple Choice

Gribble Corporation acquires the Dibble Corporation for $7,200,000.On appraisal, the assets of Dibble Corporation have a fair market value of $6,800,000.The excess of the purchase price over the fair market value of the assets:

• A)Can be apportioned to the assets based on their relative fair market value.
• B)Is goodwill that is amortized over 15 years.
• C)Is goodwill that is amortized over 40 years.
• D)Must be capitalized until Dibble is sold.

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Definitions:

Bowel Incontinence

An inability to control bowel movements, causing involuntary passage of stool.

Extended Care Unit

A facility that provides long-term medical care, rehabilitation, or assistance with activities of daily living for patients recovering from an illness or surgery.

Pelvic Floor Muscles

A layer of muscles that support the pelvic organs and span the bottom of the pelvis, playing a key role in urinary and fecal continence as well as sexual function.

Bedpan

A receptacle for urine and feces used by people confined to bed.