Twilight Corporation Acquired End-Of-The-World Products on January 1, 2014 for $6,400,000

question 38

Multiple Choice

Twilight Corporation acquired End-of-the-World Products on January 1, 2014 for $6,400,000, and recorded goodwill of $1,200,000 as a result of that purchase. At December 31, 2015, the End-of-the-World Products Division had a fair value of $5,440,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $4,640,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2015?

• A) $ -0-
• B) $400,000
• C) $560,000
• D) $960,000

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Definitions:

Visual Search Tasks

Visual search tasks are experiments or tasks in which individuals are asked to locate a specific item or feature among a set of distractors, used to study attention, perception, and cognitive processes.

Treisman And Gelade

Researchers known for their work on the Feature Integration Theory of attention.

Gestalt Principle

A theory which proposes that humans tend to organize visual elements into groups or unified wholes when certain principles are applied, such as similarity or proximity.

Template Matching

A theory of pattern recognition that suggests objects are identified by comparing them to mental templates or prototypes.