The Assets of the Aerospace Inc On December 31st, 2013, the Fair Values of the Assets

question 92

Multiple Choice

The assets of the Aerospace Inc. (a separately incorporated entity fully owned subsidiary of ABC Transport Inc.) showed the following asset carrying values on December 31st, 2013 (in millions) : $\begin{array}{|l|l|}\hline \text { Cash } & \$ 100 \\\hline \text { Accounts Receivable } & \$ 20 \\\hline \text { Inventories } & \$ 10 \\\hline \text { Property. Plant \& Equipment (net) } & \$ 200 \\\hline \text { Patents (net) } & \$ 20 \\\hline \text { Goodwill } & \$ 75 \\\hline & \\\hline \text { Total } & \$ 425 \\\hline\end{array}$
On December 31st, 2013, the fair values of the assets listed above were as follows:
$\begin{array}{|l|l|}\hline \text { Cash } & \$ 100 \\\hline \text { Accounts Receivable } & \$ 15 \\\hline \text { Inventories } & \$ 25 \\\hline \text { Property. Plant \& Equipment (net) } & \$ 120 \\\hline \text { Patents (net) } & \$ 60 \\\hline & \\\hline \text { Total } & \$ 320 \\\hline\end{array}$
Both ABC and Aerospace Inc. adhere to IFRS.

-Given the information provided above, what would be the carrying value of Aerospace Inc's Goodwill on January 1^st, 2014?

• A) Nil.
• B) $75 million
• C) -$30 million.
• D) -$105 million.

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Definitions:

Coelom

The fluid-filled cavity within the body of most multicellular animals, surrounded by a mesothelium, that houses and protects internal organs.

Allantois

An embryonic membrane involved in the early fluid exchange between the embryo and the yolk sac.

Hindgut

The posterior part of the alimentary canal in some animals, including the distal colon and rectum in humans.

Anus

Lower opening of the digestive tract through which fecal matter is extruded.