In 2007, Quasar LTD

question 17

Essay

In 2007, Quasar LTD. acquired all of the common stock of Penlight Laser for $124 million. The fair value of Penlight's identifiable tangible and intangible assets totaled $205 million, and the fair value of liabilities assumed by Quasar was $95 million. Quasar performed the required goodwill impairment test at the end of its fiscal year ended December 31, 2009. Management has provided the following information:
Required:
1. Determine the amount of goodwill that resulted from the Penlight acquisition.
2. Determine the amount of goodwill impairment loss that Quasar should recognize at the end of 2009, if any.
3. If an impairment loss is required, prepare the journal entry to record the loss.
$\begin{array}{lr}\text { Fair value of Penlight } & \text { \$115 million } \\\text { Fair value of Penlight's net assets (excluding goodwill) } & 107 \text { million } \\\text { Book value of Penlight's net assets (including goodwill) } & 125 \text { million }\end{array}$

Recognize the trends toward hospital mergers and the reason behind these mergers.

Understand the challenges faced by uninsured or underinsured Americans in accessing healthcare.

Recognize the criticisms of the healthcare public/private model.

Acknowledge the role of competence in health policy for nurses and nursing students.

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Definitions:

Strengthen Behavior

The process of increasing the likelihood that a particular response will occur, often through reinforcement or practice.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Chemotherapy

A type of cancer treatment that uses drugs to kill or slow the growth of cancer cells.

Nausea

A sensation of unease and discomfort in the stomach with an urge to vomit.