that time . What amount of loss on impairment of goodwill should Fleming record in 2008 ? 40 ) When a patent is amortized , the credit is usually made to 41 ) The reason goodwill is sometimes referred to as a master valuation account is because 42 ) Easton Company and Lofton Company were combined in a purchase transaction . Easton was able to acquire Lofton at a bargain price . The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton . After revaluing noncurrent assets to zero , there was still some " negative goodwill ." Proper accounting treatment by Easton is to report the amount as 43 ) Stock dividends distributable should be classified on the 44 ) Which of the following statements is false ? 45 ) Which of the following items is a current liability ? 46 ) Simson Company has 35 employees who work 8-hour days and are paid hourly . On January 1 , 2006 the company began a program of granting its employees 10 days of paid vacation each year . Vacation days earned in 2006 may first be taken on January 1 , 2007 . Information relative to these employees is as follows : What is the amount of expense relative to compensated absences that should be reported on Simson ’ s income statement for 2006 ? 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 2007 financial statements dated December 31 ? 48 ) A company offers a cash rebate of $ 1 on each $ 4 package of light bulbs sold during 2007 . Historically , 10 % of customers mail in the rebate form . During 2007 , 4,000,000 packages of light bulbs 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 ? 49 ) A contingency can be accrued when 50 ) Mark Ward is a farmer who owns land which borders on the rightof-way of the Northern Railroad . On August 10 , 2007 , due to the