The Following Data Pertains to Questions

question 24

Multiple Choice

The following data pertains to questions
Parent and Sub Inc had the following balance sheets on December 31,2008: On January 1,2009 Parent purchased all of Sub Inc's Common Shares for $40,000 in cash.On that date,Sub's Current Assets and Fixed Assets were worth $26,000 and $54,000,respectively.Assuming that Consolidated Financial Statements were prepared on that date,answer the following:
-How much Goodwill was amortized during 2003?

• A)$700
• B)($1,700)
• C)$1,700
• D)None - Goodwill is never amortized.

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Definitions:

Occipital Cortex

The part of the brain located at the back of the head, crucial for processing visual information.

Temporal Cortex

Part of the cerebral cortex involved in processing auditory information and encoding memory.

Unconscious Inference

A process postulated by Hermann von Helmholtz to explain certain perceptual phenomena such as size constancy. For example, an object is perceived to be at a certain distance and this is unconsciously taken into account in assessing its retinal image size, with the result that size constancy is maintained.

Size Constancy

The perceptual understanding that an object's size remains the same despite changes in the distance from which it is observed.