Arnez Ltd Acquired 70% of Bedard Ltd

question 36

Multiple Choice

Arnez Ltd. acquired 70% of Bedard Ltd. At the acquisition date, Bedard's net identifiable assets had a carrying value of $825,000 and a fair value of $1,000,000. Arnez paid $910,000 for the acquisition. Under the parent-company extension method, what amount should be reported for goodwill on Arnez's consolidated statement of financial position?

• A)$210,000
• B)$300,000
• C)$332,500
• D)$475,000

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Definitions:

Amygdala Activation

The process of stimulating the amygdala, a region of the brain involved in emotional responses, memory, and decision-making.

Frontal Cortex

The anterior section of the cerebral cortex, responsible for managing decisions, solving problems, directing intentional actions, awareness, and emotional responses.

Depression Levels

A measure of the severity or intensity of depressive symptoms experienced by an individual.

Dopamine

A neurotransmitter involved in many functions, including motivation, reward, and motor control.