Sander's Auto Recently Purchased Auto Express for $9

question 40

Multiple Choice

Sander's Auto recently purchased Auto Express for $9.8 million. Auto Express had a market value of $9.5 million at the time of acquisition. The additional $.3 million that Sander's Auto paid for Auto Express will be treated on Sander's Auto's balance sheet as which type of account?

• A)patent
• B)depreciation
• C)licenses
• D)goodwill
• E)acquisition expense

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Definitions:

Krafft-Ebing

Refers to Richard von Krafft-Ebing, a 19th-century Austrian psychiatrist known for his work on sexual psychopathology.

Skepticism

A philosophical approach that questions the validity or authenticity of something purported to be factual.

Sexual Response Cycle

The sequence of changes that occur in the body with increased sexual arousal, orgasm, and the return to the unaroused state, noted by William Masters and Virginia Johnson.