Question;41. The;length of the measurement period allowed to value the assets and liabilities in;an acquired business combination starts on the date of acquisition and lasts;until;A. All necessary information about the facts of the acquisition is;obtained;B. All necessary information about the facts of the acquisition is;obtained, not to exceed one month;C. All necessary information about the facts of the acquisition is;obtained, not to exceed one reporting period;D. All necessary information about the facts of the acquisition is;obtained, not to exceed one year;42. FASB;141R (ASC 805) requires contingent consideration in a business combination to;be classified as;A. An asset;B. A liability or equity;C. An asset or equity;D. An asset or a liability;43. For;all acquired contingencies, the acquirer should do all of the following except;A. Provide documentation from the acquirer's attorney regarding pending;lawsuits and loan guarantees;B. Provide a description of each contingency;C. Disclose the amount recognized at the acquisition date;D. Describe the estimated range of possible undiscounted outcomes of the;contingency;44. FASB;141R (ASC 805) requires that ongoing research and development projects be;treated in all of the following ways except;A. Recorded at acquisition-date fair values;B. Classified as intangible assets having indefinite lives;C. Expensed immediately;D. Tested for impairment periodically;Essay Questions;45. On;January 1, 20X8, Alaska Corporation acquired Mercantile Corporation's net;assets by paying $160,000 cash. Balance sheet data for the two companies and;fair value information for Mercantile Corporation immediately before the;business combination are given below;Required;Prepare the journal entry to record the acquisition of Mercantile;Corporation.;46. On;January 1, 20X8, Line Corporation acquired all of the common stock of Staff;Company for $300,000. On that date, Staff's identifiable net assets had a fair;value of $250,000. The assets acquired in the purchase of Staff are considered;to be a separate reporting unit of Line Corporation. The carrying value of;Staff's investment at December 31, 20X8, is $310,000. The fair value of the net;assets (excluding goodwill) at that date is $220,000 and the fair value of the;reporting unit is determined to be 260,000.;Required;1) Explain how goodwill is tested for impairment for a reporting unit.;2) Determine the amount, if any, of impairment loss to be recognized at;December 31, 20X8.;47. SeaLine;Corporation is involved in the distribution of processed marine products. The;fair values of assets and liabilities held by three reporting units and other;information related to the reporting units owned by SeaLine are as follows;Required: Determine the amount of goodwill that SeaLine should report in its;current financial statements.
Paper#44453 | Written in 18-Jul-2015Price : $22