In 2012,Azimuth Company Purchased a Small Business for $500,000

question 112

Multiple Choice

In 2012,Azimuth Company purchased a small business for $500,000.The market value of the business's assets were $850,000,and the market value of the liabilities were $400,000.Azimuth recorded goodwill of $50,000 at time of acquisition.At the end of 2013,they measured the goodwill and found it had a remaining value of only $20,000.What will Azimuth have to do at year-end 2013?

• A) Record a loss on sale of assets.
• B) Record a loss on goodwill.
• C) Record accumulated depletion.
• D) Record a gain in goodwill.

---

Definitions:

Continuity Theory

A theory which suggests that individuals attempt to maintain consistent patterns, traits, and coping mechanisms throughout their life, contributing to their personal identity and adaptation.

Activity Theory

A theory suggesting that ongoing activity is necessary for a positive experience of aging, emphasizing the importance of social engagement and activity in later life.

Primary Appraisal

is a concept in stress theory referring to the initial evaluation process where an individual assesses the significance of an event as stressful, positive, controllable, challenging, or irrelevant.

Psychology Exam

An assessment designed to measure understanding, application, and analysis of concepts and theories within the field of psychology.