Parsons Company Acquired 90% of Roxy Company Several Years Ago

question 12

Multiple Choice

Parsons Company acquired 90% of Roxy Company several years ago and recorded goodwill of $200,000 at that date. During 2013 an analysis of the fair value of Roxy's assets determined an impairment of goodwill in the amount of $50,000.
-At what amount would consolidated goodwill be reported for 2013?

• A) $150,000.
• B) $200,000.
• C) $50,000.
• D) $0.
• E) $135,000.

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Definitions:

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a cynical disregard for morality, and a focus on self-interest and deception.

Mutual Goals

Objectives shared by all parties in a negotiation or collaborative effort, fostering cooperation and a sense of common purpose.

Distributive Bargaining

A negotiation process focused on dividing a limited amount of resources, where one party's gain is typically another's loss, echoing the principles of distributive negotiations but emphasizing the competitive aspect.

Extraversion

A personality trait characterized by outgoingness, high energy, and engagement in social situations.