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these cash flows , discounted at Malrom ’ s market interest rate , is $ 4,800,000 . At what amount should the patent be carried on the December 31 , 2007 balance sheet ? 40 ) Goodwill 41 ) 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 42 ) The reason goodwill is sometimes referred to as a master valuation account is because 43 ) Which of the following items is a current liability ? 44 ) Which of the following statements is false ? 45 ) Stock dividends distributable should be classified on the 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 : Year Hourly Wages Vacation Days Earned by Each Employee Vacation Dayse Used by Each Employee 2006 $ 28.50 10 0 2007 $ 27.00 10 8 2008 $ 28.50 10 10 What is the amount of expense relative to compensated absences that should be reported on Simson ’ s income statement for 2006 ? 47 ) A company buys an oil rig for $ 1,000,000 on January 1 , 2007 . The life of the rig is 10 years and the expected cost to dismantle 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 company . What expense should be recorded for 2007 as a result of these events ? 48 ) 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