Paranich Co

question 16

Multiple Choice

Paranich Co. acquired Crowley Co. in a business combination at December 31, 20X4. Crowley has a capital asset that it has been amortizing at a rate of $10,000 per year. At the time of the acquisition, the asset had a book value of $70,000 and a fair value of $77,000. The asset has a remaining life of seven years. With respect to this asset, how much amortization expense should Paranich report on its December 31, 20X5, consolidated financial statements?

• A)$ 1,000
• B)$ 7,700
• C)$10,000
• D)$11,000

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Definitions:

Activators

Molecules that increase the activity of enzymes or other proteins, often playing critical roles in various biological pathways.

Homeotic Genes

Genes that control the development of anatomical structures in various organisms by determining the identity of body parts.

Transcription Factors

Proteins that bind to specific DNA sequences to control the rate of transcription of genetic information from DNA to messenger RNA.

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in living organisms.