2a)

The U.S. GAAP option to use a qualitative assessment for impairment testing applies to:
	Indefinite life intangibles and goodwill
	Goodwill only
	Limited life and indefinite life intangibles and goodwill
	Limited life intangibles only

2b)

A company pays $70 million in cash to acquire 70% of the voting stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $25 million, and the book value of the acquired company is $20 million. There are no revaluations of the acquired company's identifiable net assets. Goodwill to the noncontrolling interest, following U.S. GAAP, is:
	$0
	$22.5 million
	$19 million
	$15 million

2c)

Pratt Company buys 65% of the voting stock of Sully Corporation at a 40% premium over the market price of Sully's stock. Which statement is most likely to be true concerning the goodwill resulting from this acquisition?
	Goodwill is allocated 65% to Pratt and 35% to the noncontrolling interest in Sully.
	All goodwill is allocated to the noncontrolling interest in Sully.
	Goodwill is allocated 60% to Pratt and 40% to the noncontrolling interest in Sully.
	The goodwill allocation to Pratt is more than 65% of the total goodwill.

2d)

15.

Python acquires 80% of the voting stock of Slither on January 1, 2020 for $4,000. The fair value of the noncontrolling interest is $950. Slither's balance sheet at the date of acquisition is as follows:

	Book Value Dr (Cr)	Fair Value Dr (Cr)
Tangible assets	$5,000	$6,500
Identifiable intangibles		2,000
Liabilities	(3,000)	(3,000)
Capital stock	(600)
Retained earnings	(1,400)

The gain on acquisition is:

A)

$ 550

B)

$1,500

C)

$ 600

D)

$ 750