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Using straight-line amortization for patents

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Malrom uses straight-line amortization for patents. On December 31, 2007, the expected future cash flows expected from the patent were expected to be $800,000 per year for the next eight years. The present value of these cash flows, discounted at Malrom"s market interest rate, is $4,800,000. At what amount should the patent be carried on the December 31, 2007 balance sheet? A. $10,000,000 b. $8,000,000 c. $6,400,000 d. $4,800,000 69. Twilight Corporation acquired End-of-the-World Products on January 1, 2008 for $2,000,000, and recorded goodwill of $375,000 as a result of that purchase. At December 31, 2008, the End-of-the-World Products Division had a fair value of $1,700,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $1,450,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2008? A. $ -0b. $125,000 c. $175,000 d. $300,000 70. Fleming Corporation acquired Out-of-Sight Products on January 1, 2008

Reference no: EM13152458

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