Through 50 Years of High Quality Service, Domo Diagnostics Laboratory

question 27

Multiple Choice

Through 50 years of high quality service, Domo Diagnostics Laboratory has created goodwill with its clients that management estimates is worth at least $20,000,000. Under IAS 38, how should this be recognized?

• A) An intangible asset "Goodwill" should be debited for $20,000,000.
• B) The $20,000,000 should be expensed over a period of 20 years.
• C) The $20,000,000 should be expensed over a period of 50 years.
• D) It should not be recognized in Domo's accounting records at all.

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Definitions:

Variance

A measure of how much values in a dataset differ from the mean of the dataset, indicating the spread of data points.

Discrete Probability Distribution

A statistical function that describes the probability of occurrence of each value of a discrete random variable.

Discrete Random Variable

A variable that takes on a countable number of distinct values and is often used to model scenarios where outcomes are distinct and separate.

Discrete Quantitative Variables

Variables that represent countable quantities and can take on a finite number of distinct values.