Growth Corp., a publicly accountable entity, purchased a company with the following assets and liabilities for

$100,000:

	Carrying value	Fair value
Inventories	$18,000	$17,000
Equipment	12,000	10,000
Intangible assets	32,000	40,000
Accounts payable	15,000	15,000
Long-term liabilties	10,000	15,000

Which of the following is NOT correct about the difference between carrying value and fair value?

A.

Inventories could have a lower fair value due to accounting errors.

B.

Equipment could have a lower fair value due to decreased productive capacity.

C.

Long-term liabilities could have a higher value due lower interest rates.

D.

Inventories could have a lower fair value due to obsolescence.