9. Twill Company has a reporting unit with the fair value of its net identifiable assets of $500,000. The carrying value of the reporting units net assets on Twills books is $575,000, which includes $90,000 of goodwill. The fair value of the reporting unit is $600,000. Twill should report impairment of goodwill of: *

$30,000

$60,000

$15,000

$0

None of the above

10. On January 2, 2019, Pencil Co. purchased 15 percent of Eraser Inc.s outstanding common shares for $500,000. Pencil is the largest single shareholder in Eraser and is able to exercise significant influence over Eraser. Eraser reported net income of $400,000 for 2019 and paid dividends of $100,000. In its December 31, 2019, balance sheet, what amount should Pencil report as investment in Eraser? *

$545,000

$560,000

$500,000

$485,000

None of the above

11. On January 2, 2019, Pilates Inc. paid $1,800,000 to acquire all the net assets of Spinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below.

On January 2, 2019, Spinning anticipated collecting $370,000 of the recorded Accounts Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $200,000. What was the amount of goodwill that would be reported on Pilate's balance sheet as of the date of acquisition? *

$275,000

$285,000

$290,000

$390,000

None of the above

On January 1, 2017, Brighton Company acquired the net assets of Dakota Company for $1,580,000 cash. The fair value of Dakotas identifiable net assets was $1,310,000 on this date. The information for the subsequent years were as shown in the below table.

12. Based on the above information, what amount would be reported by Brighton as goodwill at the end of 2018? *

$0

$60,000

$210,000

$270,000

None of the above