QUESTION 18 Jenkins Manufacturing Company decided to expand further by purchasing the Company. The balance sheet of the Company as of December 31, 2013 was as follows: Assets Uabilities and Equities Cash $ 100,000 Accounts payable $ 175,000 Receivables 150,000 Common stock 500 000 Inventory 200,000 Retained earnings 675.000 Plant assets (net) 1.000.000 Total assets $1450.000 Total liabilities and equities $1.450.000 An appraisal acreed to by the parties indicated that the fair market value of the inventory was $250.000 and that the for market value of the plant assets was $1.100.000. The fair market value of other accounts is equal to the amount reported on the balance sheet. Additionally, it was agreed that the fair value of Blues internet domain name was 5.000. Blues had never recognized any value for this internally generated and the greed purchase price was 51.500.000, and this amount was paid in cash to the previous owners of Blue Company, How much goodwill should Jenkins report for this purchase? 0 167.000 575.000 $125,000 1225.000 QUESTION 19 Weaver iloxing Company needs to determine if its indefinite-Ife intables other than goodwill have been impared and should be reduced or written off on its balance sheet. The impairment testis) to be used is (are) Recoverability Test Yes Fair Value Test - Yes Recoverability Test Yes Fair Value Test. No Recoverability Test No Fair Value Test - Yes Recoverability Test No: Far Value Test - No