Paranich Co

question 10

Multiple Choice

Paranich Co.acquired Crowley Co.in a business combination at December 31,20X4.Crowley has a capital asset that it has been amortizing at a rate of $10,000 per year.At the time of the acquisition,the asset had a book value of $70,000 and a fair value of $77,000.The asset has a remaining life of 7 years.With respect to this asset,how much amortization expense should Paranich report on its December 31,20X5 consolidated financial statements?

• A)$ 1,000
• B)$ 7,700
• C)$10,000
• D)$11,000

---

Definitions:

Antitrust Laws

Legislation designed to promote competition and prevent monopolies, monopolistic practices, and other unfair business practices that restrict free trade.

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic and anti-competitive practices.

Unreasonable Conduct

Behavior by an individual or entity that is not rational or sensible, often violating norms or laws.

Antitrust Actions

Legal measures taken to prevent or reduce monopoly power and foster competition in the marketplace.