The Fair Value of Net Identifiable Assets of a Reporting

question 56

Multiple Choice

The fair value of net identifiable assets of a reporting unit of Y Company is $270,000.The carrying value of the reporting unit's net assets on Y Company's books is $320,000,including $50,000 goodwill.If the reported goodwill impairment for the unit is $10,000,what would be the fair value of the reporting unit?

• A) $320,000
• B) $310,000
• C) $270,000
• D) $290,000

---

Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Par

This refers to the face value of a bond or stock as stated by the issuing company.

Net Income

After all costs and taxes are removed from revenues, the company's residual profit.

Treasury Stock

This refers to shares of stock that were issued and later reacquired by the issuing corporation. It is often held to utilize in future acquisitions or to reissue to employees as part of compensation packages.