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:

Fischer Projection

A two-dimensional drawing style used to represent three-dimensional molecules of carbohydrates and amino acids.

D-Glucose

A naturally occurring form of glucose, a simple sugar that serves as a primary source of energy for living organisms.

Open-Chain Form

Describes a molecular structure that consists of atoms connected in a linear or branched sequence, rather than a closed ring.

Fischer Projection

A method to represent the three-dimensional structure of molecules, such as carbohydrates and amino acids, on a two-dimensional plane using crossed lines.