1. Fiorina Corp. purchased a trademark from Sanders Inc. for $200,000. The trademark was expected to have an indefinite life. What impairment tests should Fiorina use on the trademark?

a. 2-step (recoverability and fair value)

b. 1-step (fair value)

2. Cheese Inc. paid $1 million for 100% of the voting stock of Mouse Corp. Mouse had total assets on that date with a book value of $1.8 million and total liabilities with a book value of $1.0 million. The fair values of Mouse's assets and liabilities on that date were $2.2 million and $1.3 million, respectively. How much goodwill should Cheese recognize as a result of this acquisition?

a. $1 million

b. $200,000

c. $100,000

d. $0

3. Under the new revenue recognition standard, when can a company recognize revenue?

a. When a contract exists, even if that contract is verbal or implicit

b. When a performance obligation exists

c. When collection is virtually certain

d. When a company performs a performance obligation