Regular Corp

question 14

Multiple Choice

Regular Corp.has four divisions.One of them,Weeble Products,was acquired on January 1,2016,for $60,000,000,and recorded goodwill of $6,000,000 as a result of that purchase.At December 31,2017,Weeble Products had a fair value (including goodwill) of $37,000,000.and the book value of the company's net assets (without goodwill) was $44,000,000.The fair value of Weeble's net assets (without goodwill) at December 31,2017 was $33,000,000.What amount of loss on impairment of goodwill should Regular record in 2017?

• A)-0-
• B)$2,000,000
• C)$4,000,000
• D)$11,000,000

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Definitions:

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other terms agreed upon by the partners in a business venture.

Unanimous Written Consent

Unanimous Written Consent refers to a legal document that indicates the agreement of all members of a board or group on a decision without the need for a formal meeting.

Limited Partners

Investors in a limited partnership who have their liability for the debts of the business limited to the amount they have invested.

Partnership Agreement

A contract between business partners outlining the terms and conditions of their partnership, including responsibilities and profit sharing.