amortized until 2002 and $ 4.5 million remained on the books thereafter . In 2008 , Simco ' s production machinery was assessed for impairment as a long-lived asset because of obsolescence issues . What relationship will the auditors most likely make between the facts stated above ? ( Points : 4 )
BlizzardCraft erroneously treated the acquisition of Simco as a purchase transaction when it should have been a pooling of interests . Simco should not have amortized goodwill previous to 2002 . Simco ' s goodwill should have been written off when purchased by BlizzardCraft in a one-time transaction .
The goodwill related to Simco may have been impaired during 2008 .
64 . All of the following represent a related entity to an organization except ( Points : 4 ) the president ' s son . an affiliate with common ownership . customers . primary owners .
65 . All of the following represent equity issuance requiring prominent accounting , presentation and disclosure treatment , except ( Points : 4 ) stock with beneficial conversion features . Warrants issued to a consultant for services performed . Preferred stock that is cumulative and par value is $ 0.50 per share . Dividends have not been paid on common stock since inception .
66 . The auditor will examine proceeds and trace them to recorded amounts of the par value of common stock to determine that ( Points : 4 )