Company a Purchased a 90% Interest in Company B in 2016

question 5

Essay

Company A purchased a 90% interest in Company B in 2016 with total subsidiary goodwill of $135,000.Assume the investment amount exceeded the fair value of the subsidiary with the subsidiary book value based on acquisition date, amortized balances on December 31, 2019 of $1,000,000.The estimated fair value of Company B of $1,035,000 and the estimated fair value of net identifiable assets of $1,000,000.Select the following which is applies to the above transaction:
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Goodwill is not impaired and no loss is calculated.
Goodwill is impaired and a Goodwill impairment loss of $100,000 is calculated.
All of the goodwill of $135,000 needs to be written off.
Goodwill is impaired and a Goodwill impairment loss of $35,000 is calculated.

Define and differentiate between cleavage, implantation, and differentiation.

Recognize the sequence and timing of pivotal developmental milestones before birth.

Comprehend the biological basis and developmental implications of totipotency and heterochrony.

Grasp the role and function of the umbilical cord and placenta in fetal development.

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Definitions:

Schedule

A plan that outlines specific times at which certain tasks, events, or operations are to occur.

Market Prices

The current value at which goods or services can be bought or sold in an open market.

Supply and Demand

A foundational economic model that explains how prices and quantities of goods and services adjust in a market based on the interaction between sellers' supply and buyers' demand.

Standardized Product

Products that are uniform in quality and performance, making them interchangeable.