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Question 5. 5. ABC Company buys QRS Company for $5,000,000 in January of 20X2. At this time, the net assets of QRS Company are valued

Question 5.5.ABC Company buys QRS Company for $5,000,000 in January of 20X2. At this time, the net assets of QRS Company are valued at $4,500,000. ABC Company records $500,000 of goodwill. In 20X4, it is determined that the value of goodwill has decreased to $200,000. ABC Company should record ________. (Points : 20)

amortization expense of $300,000 in 20X4

amortization expense of $100,000 in 20X2, 20X3, and 20X4

an impairment loss of $300,000 in 20X4

nothing because goodwill is being written off over its useful life of 40 years

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