In 2015, a Company Purchased a Small Business for $250,000

question 31

Multiple Choice

In 2015, a company purchased a small business for $250,000. The market value of the small business's assets was $400,000, and the market value of the liabilities was $200,000. The company recorded goodwill of $50,000 at the time of acquisition. At the end of 2016, it measured the goodwill and found it had a remaining fair value of only $20,000. At year-end 2016, the company will:

• A)record a loss on sale of assets.
• B)record an impairment loss.
• C)record accumulated depletion.
• D)record a gain in goodwill.

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Definitions:

Nursing Negligence

A failure by a nurse to provide the care that a reasonably prudent nurse would offer under similar circumstances, resulting in harm to the patient.

Causation

The relationship between cause and effect, where one event (the cause) directly leads to the occurrence of another event (the effect).

Intentionality

The quality of being deliberate or purposeful in one's actions or thoughts.

Blood Transfusion

A medical procedure where donated blood is provided to a patient through an intravenous line to replace lost components of the blood.