Deluxe Corp

question 32

Multiple Choice

Deluxe Corp.has four international divisions.One of them,RohrSchockt Inc.,was acquired on January 1,2016,for €700,000,000,and recorded goodwill of €80,000,000 as a result of that purchase.At December 31,2016,RohrSchockt had value in use of €635,000,000 and a book value (including goodwill) of €675,000,000.The total fair value of RohrSchockt was €650,000,000.What amount of loss on impairment of goodwill should Deluxe record in 2016?

• A)$40,000,000
• B)$25,000,000
• C)$15,000,000
• D)-0-

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Definitions:

Salt Water

Water that contains a high concentration of dissolved salts, commonly found in the oceans.

Iodine Potassium Iodide (IKI)

A chemical solution commonly used as a starch indicator in biological and chemical experiments. It changes color in the presence of starch.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Hypotonic Solution

A hypotonic solution is one where the concentration of solutes is lower outside the cell than inside it, leading to water entering the cell.