Infinity Corporation Acquired 80 Percent of the Common Stock of an Egyptian

question 45

Multiple Choice

Infinity Corporation acquired 80 percent of the common stock of an Egyptian company on January 1, 20X8. The goodwill associated with this acquisition was $18,350. Exchange rates at various dates during 20X8 follow: Goodwill suffered an impairment of 20 percent during the year. If the functional currency is the U.S. dollar, how much goodwill impairment loss should be reported on Infinity's consolidated statement of income for 20X8?

• A) $3,680
• B) $3,670
• C) $3,690
• D) $3,700

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Definitions:

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.

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