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