In 2008, Antle Inc

question 2

Multiple Choice

In 2008, Antle Inc. had acquired Demski Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2009 year-end book value of $580 million. Antle assessed the fair value of Demski at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Antle would record for goodwill at the end of 2009 is:

• A)$150 million
• B)$ 95 million
• C)$ 0
• D)None of these is correct An impairment loss must be recognized if book value of the reporting unit acquired exceeds it fair value.In this case, it does not, so no impairment loss is recognized.

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Definitions:

Two-Way Digital Communication

An interactive form of communication where messages and information are exchanged between parties using digital platforms, facilitating dialogue and feedback.

Visual Aids

Tools such as charts, graphs, videos, and PowerPoint presentations used to enhance understanding or retention of information.

Semantics

The branch of linguistics concerned with the meaning of words, phrases, and sentences, and how interpretation can vary based on context.

Media Richness

The theory that communication media vary in their ability to convey information accurately and effectively, influenced by immediacy, feedback potential, and personal focus.