Q1. GTO Corporation purchased all of the common stock of Charger Company for $4 million. At the time, Charger reported total assets of $3 million and total liabilities of $1 million. At the acquisition date, the fair value of Charger’s assets was $3.5 million and the fair value of Charger’s liabilities was $1.3 million. What amount of goodwill should GTO report as a result of the acquisition and is it necessary for GTO to amortize the goodwill? Goodwill
Amortization required
A) $1.8 million No B) $1.8 million Yes C) $2.2 million No
Q2. Consider the following: Statement #1 – Copyrights and patents are tangible assets that can be separately identified.
Statement #2 – Purchased copyrights and patents are amortized on a straight line basis over 30 years. With respect to the statements about copyrights and patents acquired from an independent third party: A) both are incorrect. B) only statement #2 is incorrect. C) only statement #1 is incorrect.
Q3. According to the Financial Accounting Standards Board, what is the appropriate measurement basis for equipment used in the manufacturing process and inventory that is held for sale? Equipment
Inventory
A) Historical cost Historical cost B) Historical cost Lower of cost or market C) Fair value Lower of cost or market
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发表于 2009-1-17 10:40
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