In 1970, Ramirez Company Had Acquired Copyrights for $750, 000

question 2

Multiple Choice

In 1970, Ramirez Company had acquired copyrights for $750, 000 on several literary works from some obscure 18th century authors.These copyrights were fully amortized by 2010.In early 2010, a new anthropological discovery made these copyrights worth $2, 500, 000.As a result, Ramirez should report which of the following in its financial statements for 2010?

• A)$2, 500, 000 as a holding gain
• B)$ 750, 000 as copyrights-based recovery of value limited to historical cost
• C)$2, 500, 000 as an extraordinary item
• D)Footnote disclosure if the amount is material

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Definitions:

Second World War

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers.

Consequences

The outcomes or results that naturally follow from an action or condition, often used in the context of discussing the effects of decisions or events.

Sunbelt Growth

The demographic expansion and economic growth in the southern and southwestern regions of the United States, particularly noted from the latter half of the 20th century onwards.

1950s

Describes the decade from 1950 to 1959, marked by post-World War II recovery, the beginning of the Cold War, and significant cultural and technological changes in the United States and globally.