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:

Distributive Justice

The perceived fairness of the allocation of resources and rewards among individuals or groups within a society or an organization.

Special Needs

Refers to individuals who require additional or specialized services due to physical, mental, emotional, or learning disabilities.

Equipment

Items used for a specific purpose, often related to machinery or tools.

Traditional Authority

A form of leadership in which authority is legitimized by customs and historical precedent.