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NEW QUESTION: 1
Viper Motor Company, a publicly traded automobile manufacturer located in Detroit, Michigan, periodically invests its excess cash in low-risk fixed income securities. At the end of 2009, Viper's investment portfolio consisted of two separate bond investments: Pinto Corporation and Vega Incorporated.
On January 2, 2009, Viper purchased $10 million of Pinto's 4% annual coupon bonds at 92% of par. The bonds were priced to yield 5%. Viper intends to hold the bonds to maturity. At the end of 2009, the bonds had a fair value of $9.6 million.
On July I, 2009, Viper purchased $7 million of Vega's 5% semi-annual coupon mortgage bonds at par. The bonds mature in 20 years. At the end of 2009, the market rate of interest for similar bonds was 4%. Viper intends to sell the securities in the near term in order to profit from expected interest rate declines.
Neither of the bond investments was sold by Viper in 2009.
On January 1,2010, Viper purchased a 60% controlling interest in Gremlin Corporation for $900 million.
Viper paid for the acquisition with shares of its common stock.
Exhibit 1 contains Viper's and Gremlin's pre-acquisition balance sheet data.
Exhibit 2 contains selected information from Viper's financial statement footnotes.
Using only the information contained in Exhibit 2, which of the following statements is most correct when presenting Viper's consolidated income statement for the year ended 2010?
A. An impairment loss of $275 million should be recognized under U.S. GAAP.
B. An impairment loss of $5 million should be recognized under IFRS.
C. No impairment loss is recognized under U.S. GAAP or IFRS.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
According to U.S. GAAP, the goodwill is not impaired since the $1,475 million fair value of Gremlin exceeds the $1,425 million carrying value. Thus, no impairment loss is recognized.
Under IFRS, no impairment loss is recognized since the $1,430 million recoverable amount exceeds the
$1,425 million carrying value. (Study Session 5, LOS 21.b)
NEW QUESTION: 2
A customer recently integrated EMC Avamar into their existing NetWorker datazone. After creating a deduplication client and defining the NetWorker deduplication node, the backup is started. However, the backup failed.
What must be done to perform a successful backup?
A. Create an AFTD to store the additional bootstrap information
B. Create a local AFTD on the storage node to store deduplication metadata
C. Create an AFTD to store the deduplication indexes
D. Create an AFTD on the Avamar server to store deduplication metadata
Answer: B
NEW QUESTION: 3
What is the primary benefit of using upgrade_export over either backup or snapshot?
A. upgrade_export has an option to backup the system and SmartView Tracker logs while backup and snapshot will not.
B. upgrade_export is operating system independent and can be used when backup or snapshot is not available.
C. The commands backup and snapshot can take a long time to run whereas upgrade_export will take a much shorter amount of time.
D. upgrade_export will back up routing tables, hosts files, and manual ARP configurations, where backup and snapshot will not.
Answer: B