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

---

Definitions:

James-Lange Theory

A theory of emotion that proposes physical reactions to external stimuli lead to emotional responses.

Guilty Knowledge Test

A psychological assessment method used to determine if a person has knowledge about a crime that would only be known to the perpetrator.

Fraternal Twins

Siblings born at the same time as a result of two separate eggs being fertilized, leading to genetic dissimilarity and typically different gender possibilities.

Identical Twins

Twins who are genetically identical because they were fertilized from one zygote that split into two, sharing exactly the same genetic material.