If Howard Company's Balance Sheet Amount of Goodwill Is $20,000 $\begin{array}{lrr} \text { GOODWILL} &5,000\\ \text { GOODWLL GAIN } &&5,000\\\end{array}$

question 84

Short Answer

If Howard Company's balance sheet amount of goodwill is $20,000 and the fair market value of the goodwill is estimated to be $25,000, which of the following entries would be recorded in Howard's books?
A.
$\begin{array}{lrr} \text { GOODWILL} &5,000\\ \text { GOODWLL GAIN } &&5,000\\\end{array}$

B.
$\begin{array}{lrr} \text { GOODWILL GAIN } &5,000\\ \text { GOODWIL } &&5,000\\\end{array}$


C.
$\begin{array}{lrr} \text { IMPAIRMENT LOSS } &5,000\\ \text {GOODWLL } &&5,000\\\end{array}$


D. $\begin{array}{lrr} \text { NO FNTRY WIII BE MADE. } &\\\end{array}$

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Definitions:

Performance Tests

Exams or assessments designed to evaluate a person's ability to perform tasks or react to scenarios in real-time, rather than through written or oral answers.

IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

Criticisms

The expression of disapproval or the identification of faults in someone or something based on perceived mistakes or weaknesses.

Flynn Effect

The observed substantial and long-sustained increase in intelligence test scores measured in many parts of the world over the 20th century.