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

question 22

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 Patents on January 1^st, 2014?

• A) Nil.
• B) $100 million.
• C) $50 million.
• D) $130 million.

---

Definitions:

Reared Together

Describes individuals, typically siblings or animals, who are raised in the same environment at the same time.

Polyandry

A type of marriage where a woman is simultaneously married to more than one man.

Polygyny

A form of marriage in which a man is allowed to have more than one wife.

Polygamy

The practice or condition of having more than one spouse at the same time.