1) Which of the following situations best describes a business combination to be ace a statutory merger? a) Both companies in a combination continue to operate as separate, but related, leg b) Only one of the combining companies survives and the other loses its separate id c) Two companies combine to form a new third company, and the original two com dissolved. d) One company transfers assets to another company it has created. 2) The objectives of FASB 141R (Business Combinations) and FASB 160 (Nonce Interests in Consolidated Financial Statements) are as follows: a) to improve the relevance, comparability, and transparency of financial informa business combinations. b) to eliminate the amortization of Goodwill. c) to facilitate the convergence project of the FASB and the International Accou Board. d) to improve the relevance, comparability, and transparency of financial inform business combinations and to eliminate the amortization of Goodwill. 3) A merger between a supplier and a customer is a(n): a) friendly combination. b) horizontal combination. c) unfriendly combination. d) vertical combination. 4) The impairment standard as it relates to goodwill is an example of a: a) consumption of benefit approach. b) loss or lack of benefit approach. c) component of other comprehensive income. d) direct matching of expenses to revenues. 5) The first step in estimating goodwill in the excess earnings approach is a) determine normal earnings. b) identify a normal rate of return for similar firms. c) compute excess earnings. d) estimate expected future earnings