In 2018,a Company Purchased a Small Business for $250,000

question 169

Multiple Choice

In 2018,a company purchased a small business for $250,000.The market value of the small business's assets was $400,000,and the market value of the liabilities was $200,000.The company recorded goodwill of $50,000 at the time of acquisition.At the end of 2019,it measured goodwill and found it had a remaining fair value of only $20,000.At year-end 2019,the company will ________.

• A) record a loss on sale of assets
• B) record an impairment loss
• C) record accumulated depletion
• D) record a gain in goodwill

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Definitions:

Electronic Health Record

Digital version of patients' paper charts, allowing real-time, patient-centered records accessible instantly and securely to authorized users in the healthcare system.

Electronic Medical Record

A digital version of a patient's paper chart, making health information available instantly and securely to authorized users.

HIPAA

The Health Insurance Portability and Accountability Act; a US law designed to provide privacy standards to protect patients' medical records and other health information.

Electronic Prescriptions

A method by which prescriptions are sent digitally from a healthcare provider to a pharmacy, improving accuracy and efficiency.