Kizmit Ltd

question 39

Multiple Choice

Kizmit Ltd. acquired Nuance Ltd. in a business combination. One of the main reasons for the acquisition is that Kizmit wanted access to Nuance's extensive customer list. The list is not recorded on Nuance's books and has an estimated value of $100,000 and an estimated life of 7 years. On Kizmit's consolidated statement of financial position, what value should be shown for Nuance's customer list?

• A)$0, since it was not recorded on Nuance's books.
• B)$100,000 less any accumulated amortization (calculated over 7 years)and any impairment losses.
• C)$100,000 less any impairment losses.
• D)$100,000 less any accumulated amortization (calculated over 5 years)and any impairment losses.

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Definitions:

Avoid Responsibility

The act of evading duties or obligations one is expected to fulfill.

Occupational Deviance

Behaviors by employees that violate workplace norms and policies, potentially harming the organization or coworkers.

Causes

Factors or events that contribute to the occurrence of an effect or condition.

Opportunities

Circumstances or situations that make it possible to do something, often leading to personal growth or achievement.