Gain contingencies usually are recognized in a company's income statement when: Realized. B. The amount can be reasonably estimated. C. The gain is reasonably possible and the amount can be reasonable estimated. D. The gain is probable and the amount can be reasonably estimated. 2. A company should accrue a loss contingency only if the likelihood that a liability has been incurred is: A. More likely than not and the amount of the loss is known. B. At least reasonably possible and the amount of the loss is known. At least reasonably possible and the amount of the loss can be reasonably estimated D Probable and the amount of the loss can be reasonably estimated. 3. Goodwill is: A. Amortized over the greater of its estimated life or forty years. B. Only recorded by the seller of a business. C. The excess of the fair value of a business over the fair value of all net identifiable assets. D. None of the above. 4. Asset retirement obligations: A. Increase the balance in the related asset account. B. Are measured at fair value in the balance sheet. C. Are liabilities associated with the restoration of a long-term asset D. All of the above are correct. 5. Juliana Corporation purchased all of the outstanding stock of Caldwell Inc, paying $2,700, cash. Juliana assumed all of the liabilities of Caldwell. Book values and fair values of acquire assets and liabilities were: Current assets (net) Property, plant & equip. (net) Liabilities Book Value Fair Value $400,000 $450,000 1,600,000 2,250,000 500,000 700,000 Juliana would record goodwill of A. $1,180,000. B. $600,000 C. $700,000 D. S1,500,000