Question 5. (TCO C) General Products Company bought Special
Products Division in 2010 and appropriately recorded $500,000 of
goodwill related to the purchase. On December 31, 2011, the fair
value of Special Products Division is $4,000,000 and it is carried on
General Products’ books for a total of $3,400,000, including the
goodwill. An analysis of Special Products Division’s assets indicates
that goodwill of $400,000 exists on December 31, 2011. What
goodwill impairment should be recognized by General Products in
2011?
$0
$200,000
$50,000
$300,000
Question 6. (TCO D) An employee's net (or take-home) pay is
determined by gross earnings minus amounts for income tax
withholdings and the employee's
portion of FICA taxes and unemployment taxes.
portion of FIT, SIT, and Medicare deductions.
portion of FICA taxes, unemployment taxes, and any voluntary
deductions.
portion of FICA taxes and any voluntary deductions.