Questionares

Does GAAP require amortization of goodwill against net income? If not, when does goodwill decrease? A.Maybe, under IFRS goodwill is written off or reduced to a lesser value only when its value is impaired. Under US GAAP, goodwill is amortized. B.Yes, goodwill is always amortized against net income over the estimated useful life of the goodwill. C.No, under both the U.S. GAAP and IFRS goodwill is written off or reduced to a lesser value only when its value is impaired. D.Maybe, if goodwill is purchased, it should be amortized over the estimated useful life of the goodwill, if goodwill is created then it should not be amortized. ANSWER As per GAAP, self generated intangible assets cannot be recognised whereas acquired intangible assets can be recognised and amortized over its useful life. Hence we can say that self generated goodwill cannot be amortized and acquired godwill can be amortized. Correct Option is  D) May be, if goodwill is ourchased, it should be amortized...

Consider a price-taking firm that has total fixed cost of $50 and faces a market determined price of $2 per unit for its output. The wage rate is $10 per unit of labor, the only variable input. Using the following table, answer the questions below.  1 units of labor 2 Output 3 Marginal product 4 Marginal revenue product 5 Marginal Cost 6 Profit 1 5 2 15 3 30 4 50 5 65 6 77 7 86 8 94 9 98 10 96 Fill in the blanks in col...

ACCOUNTING apter 6 Homework Questions 3-5 (of 8) The following information applies to the questions displayed below. The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms 3/10. n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31. a. Amalgamated sold merchandise to American Fashions at a selling price of $245,000. The merchandise had cost Amalgamated $181,000 b. Two days later, American Fashions complained to Amalgamated that some of the merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $6,500 to American Fashions. c. Just three days later, American Fashions paid Amalgama...