In 2017,a Corporation Purchased a Small Business for $250,000

question 117

Multiple Choice

In 2017,a corporation 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 corporation recorded goodwill of $50,000 at the time of acquisition.At the end of 2018,it measured goodwill and found it had a remaining fair value of only $20,000.At year-end 2018,the corporation 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:

Ovarian Follicle

A fluid-filled sac in the ovary that contains and nourishes an immature egg.

Socioeconomic Status

An individual or group's economic, social, and work status as determined by income, education, and occupation.

Infertility

The inability to conceive a child after a year or more of regular sexual intercourse without the use of birth control.

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A category of people identified by shared cultural, linguistic, or ancestral traits.