Big Company Acquired the Following Assets and Liabilities of Little

question 21

Multiple Choice

Big Company acquired the following assets and liabilities of Little Company (fair values listed below) for $470,000 cash.

Assuming these items are all recorded at their acquisition date fair values,what additional item needs to be recorded and how will it be accounted for in the future?

• A)$30,000 Goodwill,capitalized and tested for impairment
• B)$30,000 Bargain purchase,recognized in current earnings
• C)$30,000 Bargain purchase,capitalized and recognized over time
• D)$30,000 Goodwill,capitalized and amortized over time

---

Definitions:

Monoamine Oxidase A

Monoamine oxidase A (MAO-A) is an enzyme responsible for breaking down neurotransmitters such as serotonin, dopamine, and norepinephrine, influencing mood and behavior.

Warrior Gene

A colloquial term for the monoamine oxidase A (MAOA) gene, sometimes linked to aggression due to its role in regulating neurotransmitters.

Dopamine and Serotonin

Both are neurotransmitters in the brain that influence various bodily functions. Dopamine is associated with pleasure and reward, while serotonin is linked to mood stabilization, feelings of well-being, and happiness.

Air Temperatures

A measure of how hot or cold the atmosphere is, typically expressed in degrees Celsius or Fahrenheit.