QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

56. Assume U.S. GAAP (generally accepted accounting principles) applies unless

otherwise noted.

During late December 2008 Company A acquires a small competitor, Company

B. During the evaluation of the acquisition it is determined that the customer lists

of Company B have a fair value of $50,000. Company A has spent $15,000

during the year updating and maintaining its own customer lists. What will be the

value of the customer list intangible asset on Company A’s 31 December 2008

consolidated financial statements?

A. $15,000.

B. $50,000.

C. $65,000.