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:

Negotiation

A dialogue between two or more parties aimed at reaching a mutually beneficial agreement or resolving a dispute.

Resistance To Change

The unwillingness to accept or adapt to changes within an organizational or personal setting.

External Environment

The conditions, entities, events, and factors outside an organization that influence its activities and choices.

Customer-Friendly

Practices or attributes that make interactions with customers positive, satisfying, and conducive to loyalty.