The Fair Value of Net Identifiable Assets of a Reporting

question 38

Multiple Choice

The fair value of net identifiable assets of a reporting unit of X Company is $300,000.On X Company's books,the carrying value of this reporting unit's net assets is $350,000,including $60,000 goodwill.If the fair value of the reporting unit as a whole is $335,000,what amount of goodwill impairment will be recognized for this unit?

• A) $0
• B) $10,000
• C) $25,000
• D) $35,000

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Definitions:

Right Margin

The right boundary of a text block in a document, where the line of text ends on the right side.

Limbs

Refers to the arms and legs.

Simultaneous

Occurring at the same time.

Anterior Axillary Line

An imaginary line drawn along the body from the armpit (anterior axilla) down through the point at which the arm joins the body.