Question
11. Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination: a. Intangible assets arising
11. Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination:
a. Intangible assets arising from contractual or legal rights are recognized separately from goodwill b. Intangibles that can be separated from the business and sold, rented or licensed are recognized separately from goodwill c. Separately recognized intangibles are identified as either limited life or indefinite life intangibles d. The acquirer in a business combination does not recognize intangible assets unless they appear on the investee company's balance sheet
12. Topic: Goodwill impairment When a company assigns goodwill to a reporting unit acquired in a business combination, it must: a. Record an impairment loss if the fair value of the net identifiable assets held by a reporting unit decreases. b. Record an impairment loss if the fair value of the reporting unit decreases. c. Record an impairment loss if the carrying value of the reporting unit is less than the fair value of the reporting unit. d. Record an impairment loss if the fair value of the reporting unit is less than its carrying value and the carrying value of goodwill is more than the implied value of its goodwill.
**Please provide computations and explanation!!
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