Ursula Ltd

question 22

Multiple Choice

Ursula Ltd. has a subsidiary that has an intangible capital asset. It has not been recorded on the subsidiary's books, but at the date of acquisition, the asset had a fair value of $350,000 and an indefinite economic life. How should Ursula show the asset on its consolidated statement of financial position?

• A)$350,000 less accumulated amortization (calculated over 10 years)and any impairment losses.
• B)$350,000 less accumulated amortization (calculated over 40 years)and any impairment losses.
• C)The company should not show the asset on the consolidated financial statement as the subsidiary does not do so.
• D)$350,000 less any impairment losses.

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