Twilight Corporation Acquired End-Of-The-World Products on January 1, 2008 for $2,000,000

question 6

Multiple Choice

Twilight Corporation acquired End-of-the-World Products on January 1, 2008 for $2,000,000, and recorded goodwill of $375,000 as a result of that purchase.At December 31, 2008, the End-of-the-World Products Division had a fair value of $1,700,000.The net identifiable assets of the Division (excluding goodwill) had a fair value of $1,450,000 at that time.What amount of loss on impairment of goodwill should Twilight record in 2008?

• A)$ -0-
• B)$125,000
• C)$175,000
• D)$300,000

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Definitions:

Research Techniques

A variety of methods and strategies used to gather data and information for the purpose of making business decisions.

BCG Growth-Market Share Matrix

A strategic planning tool that uses two dimensions: market growth rate and market share to categorize the business portfolio into four types: Stars, Question Marks, Cash Cows, and Dogs.

Strategic Business Units

Strategic business units are distinct divisions within a larger corporation, each focusing on a specific market segment or product line, and possessing its own strategy, resources, and objectives.

Dominant Market Share

A situation in which a company, product, or service holds a majority portion of the total sales in its market.