The Fair Value of Net Identifiable Assets of a Reporting

question 8

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 of goodwill before any impairment.If the reported goodwill impairment for the unit is $10,000,what would be the fair value of the entire reporting unit?

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

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Definitions:

Location Specificity

The importance of a particular location in adding value to a product or service, often due to unique resources or qualities.

Company Specificity

Refers to the unique characteristics, resources, and capabilities that differentiate a company from its competitors, often driving competitive advantage.

Sustainable Competitive Advantage

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits and services that justify higher prices.

Strategic Objective

Long-term goals that an organization seeks to achieve, which are designed to guide its direction and decision-making processes.