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:

Expert Opinion

Advice or evaluation from someone recognized as an authority in a specific field, often used as a credible source of information.

Future

An undefined time period that has yet to occur, encompassing all events and possibilities that are to come.

Contingency Planning

The process of preparing strategies to deal with unexpected situations that may disrupt operations or cause harm to the organization.

Major Issues

Significant problems or challenges that require attention and resolution.