Fleming Corporation Acquired Out-Of-Sight Products on January 1, 2008 for $4,000,000

question 55

Multiple Choice

Fleming Corporation acquired Out-of-Sight Products on January 1, 2008 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase.At December 31, 2008, the Out-of-Sight Products Division had a fair value of $3,400,000.The net identifiable assets of the Division (excluding goodwill) had a fair value of $2,900,000 at that time.What amount of loss on impairment of goodwill should Fleming record in 2008?

• A)$ -0-
• B)$250,000
• C)$350,000
• D)$600,000

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Definitions:

Market Participants

Individuals or entities involved in the buying, selling, or regulation of goods and services within a market.

Price Ceilings

A government-imposed limit on the price charged for a product, intended to keep prices affordable for consumers.

Black Market

An illegal trading system where goods or services are exchanged in a way that is not authorized by the government, often to avoid taxes or regulations.

Market Investment

Allocating resources, often financial, into a market with the expectation of achieving a future financial return.