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)