Mitzi's Muffins Ltd

question 4

Multiple Choice

Mitzi's Muffins Ltd. purchased a commercial baking system for $150,000 at the beginning of 20X1. The estimated economic life of the system is 10 years and Mitzi's uses straight-line amortization. At the beginning of 20X3, Delicious Bakeries Ltd. acquired Mitzi's in a business combination.
-At the time of acquisition, Mitzi's baking system had a fair value of $140,000. At the end of 20X3, how much amortization expense should Mitzi report?

• A)$0
• B)$14,000
• C)$15,000
• D)$17,500

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Definitions:

Psychogenic Amnesia

Memory loss caused by psychological stress or trauma, not by neurological factors.

Organic Amnesia

A form of amnesia caused by brain injury or damage affecting memory, not linked to psychological factors.

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Psychoanalytic Theory

A set of theories originating from Sigmund Freud, which suggest that human behavior is profoundly influenced by unconscious motives.