Regular Corp

question 55

Multiple Choice

Regular Corp.has four divisions.One of them,Yulon Products,was acquired on January 1,2016,for $80,000,000,and recorded goodwill of $9,000,000 as a result of that purchase.At December 31,2017,Yulon Products had a fair value (including goodwill) of $66,000,000.The book value of the company's net assets (without goodwill) at December 31,2017 was $77,000,000.For 2017,Regular reported a loss on impairment of goodwill of $7,000,000.What was the fair value of the company's net assets (without goodwill) at December 31,2017?

• A)$73,000,000
• B)$68,000,000
• C)$64,000,000
• D)$59,000,000

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Definitions:

Federal Trade Commission

A federal agency established to prevent fraudulent, deceptive, and unfair business practices in the marketplace.

Unfair Practices

Activities or behaviors that are deceptive, unjust, or violate standards of conduct or fairness in business, often subject to legal penalties.

Interlocking Directorates

Occurs when members of a company's board of directors also serve on the boards of one or more other companies, potentially leading to conflicts of interest.

Transportation Industries

Sectors involved in the movement of people and goods from one location to another, including airlines, shipping, and logistics.