2. In 2010, Alto, Inc., had acquired Rastiline Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Alto's acquisition of Rastiline Co. had a 2011 year-end book value of $580 million. Alto assessed the fair value of Rastiline at this date to be $700 million, while the fair value of all of Rastiline's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Alto would record for goodwill at the end of 2011 is

A. $95

B. $150 million.

C. $12 million.

D. $0.

4. Bellingham Corporation purchased equipment on January 1, 2009, for $200,000. The company estimated the equipment would have a useful life of 10 years with a $20,000 residual value. Bellingham uses the straight-line depreciation method. Early in 2011, Bellingham reassessed the equipment's condition and determined that its total useful life would be only six years and that it would have no salvage value. How much would Bellingham report as depreciation on this equipment for 2011?

A. $36,000

B. $41,000

C. $27,333

D. $24,000

7. Hollywood Ltd. purchased equipment on 1/1/09 for $800,000, estimating a five-year useful life and no residual value. In 2009 and 2010, Hollywood depreciated the asset using the straight-line method. In 2011, Hollywood changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Hollywood record for the year 2011 on this equipment?

A. $120,000

B. $240,000

C. $200,000

D. $160,000

9. How would a change from the straight-line method to the sum-of-years'-digits method of depreciation be handled?

A. As a retrospective change back to the date of acquisition as though the current estimated life had been used all along.

B. As a prospective change from the current year through the remainder of its useful life.

C. None of these answer choices are correct.

D. As a cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate.