t goodwill of $200,000 exists on December 31, 2007. What goo
dwill impairment should be recognized by General Products in 2
007?
40) The intangible asset goodwill may be
41) The reason goodwill is sometimes referred to as a master val
uation account is because
42) Goodwill
43) If a shortterm obligation is excluded from current liabilities because of re
financing, the footnote to the financial statements describing this
event should include all of the following information EXCEPT
44) Stock dividends distributable should be classified on the
45) Which of the following items is a current liability?
46) A company offers a cash rebate of $1 on each $4 package of
light bulbs sold during 2007. Historically, 10% of customers ma
il in the rebate form. During 2007, 4,000,000 packages of light b
ulbs are sold, and 140,000 $1 rebates are mailed to customers.
What is the rebate expense and liability, respectively, shown on
the 2007 financial statements dated December 31?
47) A company offers a cash rebate of $1 on each $4 package of
batteries sold during 2007. Historically, 10% of customers mail
in the rebate form. During 2007, 6,000,000 packages of batteries
are sold, and 210,000 $1 rebates are mailed to customers. What
is the rebate expense and liability, respectively, shown on the 20
07 financial statements dated December 31?
48) A company buys an oil rig for $1,000,000 on January 1, 200
7. The life of the rig is 10 years and the expected cost to dismant
le the rig at the end of 10 years is $200,000 (present value at 10
% is $77,110). 10% is an appropriate interest rate for this compa
ny. What expense should be recorded for 2007 as a result of thes
e events?
49) A contingency can be accrued when
50) Mark Ward is a farmer who owns land which borders on the
right-ofway of the Northern Railroad. On August 10, 2007, due to the a
dmitted negligence of the Railroad, hay on the farm was set on f
ire and burned. Ward had had a dispute with the Railroad for sev