In 2018, a company purchased a small business for $250,000. The market value of the small business's assets was $400,000, and the market value of the liabilities was $200,000. The company recorded goodwill of $50,000 at the time of acquisition. At the end of 2019, it measured goodwill and found it had a remaining fair value of only $20,000. At year-end 2019, the company will ________.
A) record a loss on sale of assets
B) record an impairment loss
C) record accumulated depletion
D) record a gain in goodwill
B) record an impairment loss
You might also like to view...
Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers, or agents would be considered a:
A) trade allowance B) trade contest C) cooperative merchandise agreement D) drop-ship allowance
Explain how a company's value chain works. Provide an example to illustrate your response
What will be an ideal response?
The proper treatment of a deposit recorded by the business but not yet recorded by the bank is to report the deposit on the bank reconciliation as a(n):
a. addition to the book balance per checkbook. b. deduction to the book balance per checkbook. c. addition to the balance per bank statement. d. deduction to the balance per bank statement. e. none of the above.
If the opportunity cost rate is 8 percent, compounded annually, what is the present value of $8,200 due to be received in 12 years?
A. $3,068 B. $3,256 C. $3,552 D. $3,688 E. $3,854