$43.$ On June $30,2023,$ Blue Ltd$.$ exchanged $2,000$ Ivy Corp. common shares for a patent owned by Jazz Corp. The Ivy shares were acquired in $2021$ for $$125,000.$ At the exchange date, Ivy common shares have a fair value of $$80$ per share, and the patent had a carrying value of $$280,000$ on Jazzs books. Blue should record the patent ata$)$ $$280,000.$b$)$ $$160,000$c$)$ $$155,000.$d$)$ $$125,000\mathrm{.}47.$ In its December $31,2023$ financial statements, Preswick Corporation reported $$540,000$ for a patent it had acquired on January $1,2019.$ At the time of purchase, it had a useful life of $20$ years. Assuming that no impairments or revisions to the useful life occurred, what was the original purchase price of the patent?a$)$ $$700,000$b$)$ $$675,000$c$)$ $$540,000$d$)$ $$720,000$Answer: dFeedback: $($$$540,000-$: $15)$ x $5=$ $$180,000$; $$180,000+$ $$540,000=$ $$720,00048.$ An impairment of an identifiable intangible asset arises when its carrying amount exceeds thea$)$ present value of the expected future net cash flows.b$)$ expected future economic benefitsc$)$ assets cost.d$)$ assets fair value$\mathrm{.}49.$ Similar to impairment models and standards that apply to long$-$lived tangible assets, the rational entity impairment model applies also toa$)$ limited$-$life intangible assets for organizations using IFRSb$)$ indefinite$-$life intangible assets for organizations using ASPE.c$)$ indefinite$-$life intangible asset for organizations using IFRS.d$)$ limited$-$life intangible assets for organizations using ASPE$\mathrm{.}50.$ Under ASPE, to determine if there is an impairment loss, compare thea$)$ fair value of the identifiable assets to the book value of the assets.b$)$ fair value of the reporting unit to the carrying value of the reporting unitc$)$ imputed current fair value of the assets with the carrying value of the assets.d$)$ imputed carrying value of the assets with the fair value of the assets$\mathrm{.}56.$ Which of the following is correct regarding the rational entity impairment model?a$)$ For limited$-$life intangibles, IFRS requires that the rational entity impairment model be appliedb$)$ For limited$-$life intangibles, ASPE requires that the rational entity impairment model be applied.c$)$ For indefinite$-$life intangibles, ASPE requires that the rational entity impairment model be applied.d$)$ Neither ASPE nor IFRS allow the use of the rational entity impairment model$\mathrm{.}57.$ Goodwill is the excess of the purchase price of the acquired enterprise over thea$)$ fair value of the tangible net assets acquired.b$)$ book value of the identifiable net assets acquired.c$)$ book value of the tangible net assets acquired.d$)$ fair value of the identifiable net assets acquired$58.$ Which of the following is NOT a specifically identifiable intangible asset?a$)$ patentsb$)$ trademarksc$)$ goodwill.d$)$ copyrights$59.$ Under IFRS, to determine if there is an impairment of goodwill, compare thea$)$ fair value of the identifiable assets to the book value of the assets.b$)$ fair value of the reporting unit to the carrying value of the reporting unit.c$)$ imputed current fair value of goodwill with the carrying value of goodwill.d$)$ carrying amount of the CGU with the recoverable amount$60.$ Goodwill may bea$)$ capitalized only when purchasedb$)$ capitalized either when purchased or created internally.c$)$ capitalized only when created internally.d$)$ written off directly to retained earnings$\mathrm{.}61.$ Internally generated goodwilla$)$ is not possible.b$)$ may be capitalized or expensed.c$)$ is not capitalizedd$)$ is capitalized but not amortized$\mathrm{.}62.$ Purchased goodwill shoulda$)$ be expensed as soon as possible against retained earnings.b$)$ be expensed as soon as possible to other comprehensive income.c$)$ be amortized over the period benefited, but not more than $40$ years.d$)$ not be expensed or amortized, but rather reduced only if impairment occurs$63.$ Negative goodwill arises whena$)$ the book value of identifiable net assets acquired exceeds the purchase price.b$)$ the fair value of identifiable net assets acquired exceeds the purchase pricec$)$ the fair value of identifiable net assets acquired is less than the purchase price.d$)$ the fair value of identifiable net assets acquired exceeds the book value$\mathrm{.}64.$ If the fair value of the net assets acquired in a business combination is greater than the purchase price, the difference is calleda$)$ organizational costs.b$)$ contributed surplus.c$)$ purchased goodwill.d$)$ negative goodwill or bargain purchase$66.$ Which of the following costs of goodwill should be capitalized?Costs of goodwillfrom a businesscombination accountedCosts of developing for as a purchase goodwill internallya$)$NoNob$)$NoYesc$)$YesYesd$).$YesNo$67.$ Howdy Manufacturing Corp. decided to expand further by purchasing the net assets of Doody Manufacturing Corp. Doodys statement of financial position at December $31,2023$ includes the following information:Cash$$210,000$Receivables$450,000$Inventory$275,000$Plant assets $($net$)1,025,000$Accounts Payable$$325,000$An appraisal indicates that the fair value of the inventory is $$320,000$ and the fair value of the plant assets is $$1,225,000.$ What value is allocated to goodwill if Howdy purchases Doody for $$3,000,000?$a$)$ $$1,365,000$b$)$ $$1,120,000.$c$)$ $$715,000$d$)$ nil, there is no goodwillAnswer: bFeedback: $$3,000,000($$$210,000+$$$450,000+320,000+$$$1,225,000-$$$325,000)=$ $$1,120,000$