Company X paid $700,000 for 30% of the net assets of Company Z. The fair value of the assets are $3,000,000 and the fair value of the liabilities are are $1,000,000. What is the amount of goodwill?

Question 9 options:

	$600,000
	$500,000
	$100,000
	none of the above

Question 10 (1 point)

Which of the following methods of amortization is normally used for intangible assets?

Question 10 options:

	a) Capital cost allowance
	b) Straight-line
	c) Activity method
	d) Double declining-balance

Question 11 (1 point)

Under ASPE, the cost for environmental clean-up costs at the end of an asset's useful life are

Question 11 options:

	a) Expensed as incurred
	b) Recognized only if they represent a legal obligation.
	c) Are capitalized once they have become apparent.
	d) None of the above

Question 12 (1 point)

Saved

When calculating impairment and using the rational entity model, which of the following is NOT correct?

Question 12 options:

	If the recoverable amount > carrying amount, there is no impairment loss
	If the recoverable amount < carrying amount the impairment loss is the difference between the recoverable amount and the carrying amount
	The recoverable amount is the higher of the value in use and the fair value less costs of disposal
	The recoverable amount is the lower of the value in use and the fair value less costs of disposal

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