Caesar Company Acquired Illusions, Inc

question 15

Multiple Choice

Caesar Company acquired Illusions, Inc. three years ago, and the purchase included $75,000 of goodwill. Illusion's goodwill now has a fair value of $60,000 - how would Caesar account for this difference?

• A)Goodwill is amortized - usually on a straight line basis, so the annual amortization will be adjusted.
• B)A journal entry will be made - debiting Loss on Impairment of Goodwill for $15,000 and crediting Goodwill for $15,000.
• C)The difference will be written off using an allowance account.
• D)The account Goodwill will be debited for $15,000 and Loss on Goodwill will be credited for $15,000.

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Definitions:

Small Package Carriers

Companies that specialize in the shipment of small parcels or packages, typically offering services like rapid delivery and tracking capabilities.

Transportation Management

The planning, execution, and optimization of the physical movement of goods, both incoming and outgoing, and ensuring the shipment is compliant and properly documented.

Accessibility Limitations

Restrictions or barriers that prevent individuals from using services, accessing information, or participating in activities, often due to physical, technological, or design issues.