Mitzy's Muffins Ltd

question 24

Multiple Choice

Mitzy's Muffins Ltd.purchased a commercial baking system for $150,000 at the beginning of 20X1.The estimated economic life of the system is 10 years and Mitzy's uses straight-line amortization.At the beginning of 20X3,Delicious Bakeries Ltd.acquired Mitzi's in a business combination.At the time of the acquisition,Mitzi's baking system had a fair value of $140,000.With respect to the baking system,how much amortization expense should Delicious Bakeries report on its consolidated financial statements at the end of 20X3?

• A)$ 2,500
• B)$14,000
• C)$15,000
• D)$17,500

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Definitions:

Consciousness

The combination of a person’s subjective experience of the external world and the person’s internal mental activity; this combination results from brain activity.

Hypnosis

A social interaction during which a person, responding to suggestions, experiences changes in memory, perception, and/or voluntary action.

Meditation

A practice in which intense contemplation leads to a deep sense of calmness that has been described as an altered state of consciousness.

Unresponsive Wakefulness Syndrome

A condition previously known as vegetative state, where a person awakens from a coma but does not show signs of awareness or responsive behavior.