Regular Corp

question 106

Multiple Choice

Regular Corp.has four divisions.One of them,Zolo Products,was acquired on January 1,2016,for $400,000,000,and recorded goodwill of $50,750,000 as a result of that purchase.At December 31,2016,Zolo Products had a recoverable amount of $375,000,000.The carrying value of the company's net assets at December 31,2016 was $355,000,000 (including goodwill) .What amount of loss on impairment of goodwill should Regular record in 2016?

• A)$45,000,000
• B)$25,000,000
• C)$20,000,000
• D)-0-

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Definitions:

T Statistic

The t statistic is a value used in statistical analysis to determine the significance of the difference between two sample means, relative to the sample variability.

Preliminary Analysis

An initial examination of data to check for possible errors, understand basic trends and assumptions, and determine the most appropriate statistical tests.

Approximately Normal

Describes a data distribution that closely follows a normal distribution, even though it may not be perfectly normal.

Outliers

Observations that lie an abnormal distance from other values in a random sample from a population.