Amber Ltd Acquired Luna Ltd

question 19

Multiple Choice

Amber Ltd. acquired Luna Ltd. in a business combination. One of the main reasons for the acquisition is that Amber wanted access to Luna's extensive customer list. The list is not recorded on Luna's books and has an estimated value of $100,000 and an estimated life of seven years. On Amber's consolidated statement of financial position, what value should be shown for Luna's customer list?

• A)$0, since it was not recorded on Luna's books
• B)$100,000 less any impairment losses
• C)$100,000 less any accumulated amortization (calculated over five years)and any impairment losses
• D)$100,000 less any accumulated amortization (calculated over seven years)and any impairment losses

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Definitions:

Work Environment

The physical and psychological conditions under which employees perform their job duties, including the office layout, culture, and policies.

Social Identities

Aspects of a person's self-concept derived from perceived membership in social groups such as national, cultural, religious, and gender.

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.

Lifetime Employees

A concept where employees stay with a single employer for the entirety of their career, often seen as offering stability and loyalty.