The Fair Value of Net Identifiable Assets of a Reporting

question 39

Multiple Choice

The fair value of net identifiable assets of a reporting unit exclusive of goodwill of Y Company is $270,000. The carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50,000 goodwill. If the reported goodwill impairment for the unit is $10,000, what would be the fair value of the reporting unit?

• A) $320,000
• B) $310,000
• C) $270,000
• D) $290,000

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Definitions:

Egocentrism

Piaget’s term for children’s inability to take another person’s point of view or perspective and to assume that others share the same feelings, knowledge, and physical view of the world.

Preoperational Reasoning

Piaget’s second stage of cognitive development, between about ages 2 and 6, characterized by advances in symbolic thought, but thought is not yet logical.

Piaget

A reference to Jean Piaget, a Swiss psychologist known for his pioneering work in child development and cognitive theory.

Cognitive Development

The process of growth and change in intellectual abilities, including thinking, reasoning, problem-solving, and understanding complex concepts.