Following Its Acquisition of the Net Assets of Burnt Company,Primrose

question 10

Multiple Choice

Following its acquisition of the net assets of Burnt Company,Primrose Company assigned goodwill of $60,000 to one of the reporting divisions.Information for this division follows: Based on the preceding information,what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?

• A)$0
• B)$60,000
• C)$30,000
• D)$10,000

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Definitions:

Innovating Firms

Companies that introduce new products, services, or processes, contributing to technological progress and market dynamics.

Enhance Profits

Strategies or actions taken by a business to increase its net earnings.

Imitation

The act of copying or mimicking the features, designs, or actions of another product, service, or behavior, often with the intention of capturing value or recognition.

Technological Advances

Improvements in technology, which typically lead to more efficient production processes, new products, or improved ways to perform tasks.