A Purchaser of the Assets of a Business Must Allocate

question 949

Multiple Choice

A purchaser of the assets of a business must allocate the purchase price to the individual assets in accordance with the written agreement between the purchaser and the seller. Which of the following assets would be least preferred for purposes of allocating value from the purchaser point of view?

• A) office building
• B) inventory
• C) goodwill
• D) equipment

---

Definitions:

Compressor Compression Rings

Rings fitted around a compressor's piston to seal the combustion chamber against air leaks and maintain compression efficiency.

Inlet Restriction

A limitation or obstruction in the pathway through which fluids or air enters a system, affecting the system's performance.

Service Diaphragm

The rubber pancake on which service brake pressure acts to apply the brakes on an air brake–equipped vehicle.

Cam-to-bushing Radial

Refers to the radial clearance or distance between a camshaft and its surrounding bushing, critical for proper mechanical operation.