16. If an impairment loss is recorded on previously recognized goodwill due to the transitional goodwill impairment test, the loss should be treated as a(n): A) loss from a change in accounting principles. B) loss from continuing operations. C) extraordinary loss. D) loss from discontinuing operations. 17. The bonus method: A) B) C) D) Requires that partners always invest equal amounts in the partnership. Is not an acceptable technique to record a partnership. Allocates actual capital among the partners. Allows the recording of an intangible asset to equalize equity accounts. 18. When a new corporation is formed to acquire two or more other corporations and the acquired corporations cease to exist as separate legal entities, the result is a statutory A) acquisition. B) combination. C) merger D) consolidation. 19. Impairment of goodwill A) Causes the asset account to be decreased. Is the only time goodwill from a business combination is an expense. B) C) Cannot ever be reclaimed in future periods. D) All of the above. 20. If partners are jointly and severally liable for a partnership debt, it means the creditor A) Must name all partners in a lawsuit but each partner is only liable for a proportional amount. B) May name any or all partners in a lawsuit and each partner is liable for the entire amount. C) May name any or all partners in a lawsuit but each partner is only liable fora proportional amount. D) Must name all partners in a lawsuit and each partner is liable for the entire debt. 21. Which of the following is NOT a reason for a parent-subsidiary relationship? A) The relationship is permanent-the parent can never sell its interest in the subsidiary. B) It is easier to establish a parent-subsidiary relationship than a merger. C) The parent can establish a controlling interest with a smaller investment. D) The parent has limited responsibility for the liabilities of the subsidiary