Table 24-10 The Table Below Shows the Prices of Baseballs and Baseball

question 502

Multiple Choice

Table 24-10
The table below shows the prices of baseballs and baseball bats for three years. Assume the typical consumer's basket consists of 6 baseballs and 2 baseball bats.
-Refer to Table 24-10. If 2008 is the base year, then the consumer price index was

• A)100.00 in 2008, 110.03 in 2009, and 117.43 in 2010.
• B)100.00 in 2008, 110.03 in 2009, and 129.20 in 2010.
• C)100.00 in 2008, 117.00 in 2009, and 132.50 in 2010.
• D)169.50 in 2008, 186.50 in 2009, and 219.00 in 2010.

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Definitions:

Goodwill

Goodwill represents the excess of the purchase price paid for an acquired company over the fair value of its identifiable net assets at the time of acquisition.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, recognizing their share of the profits and losses.

Indefinite Useful Life

An intangible asset with an expected life that extends beyond the foreseeable future, not requiring amortization but subject to annual impairment tests.

Acquisition Differential

The difference between the purchase price of an acquired entity and the fair value of its identifiable net assets.