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:

Erosional Remnant

A mountain or hill that remains when adjacent areas have eroded to lower levels.

Anticline

A type of fold in sedimentary strata that resembles an arch, with the oldest beds at its core.

Syncline

A fold in sedimentary strata that resembles a trough, where the youngest rocks are at the core of the fold.

Crust Thickness

The measure of the depth or the vertical extent of the Earth's crust, varying between oceanic and continental regions.