Kizmit Ltd

Multiple Choice

Kizmit Ltd. acquired Nuance Ltd. in a business combination. One of the main reasons for the acquisition is that Kizmit wanted access to Nuance's extensive customer list. The list is not recorded on Nuance's books and has an estimated value of $100,000 and an estimated life of 7 years. On Kizmit's consolidated statement of financial position, what value should be shown for Nuance's customer list?

A) $0, since it was not recorded on Nuance's books.
B) $100,000 less any accumulated amortization (calculated over 7 years) and any impairment losses.
C) $100,000 less any impairment losses.
D) $100,000 less any accumulated amortization (calculated over 5 years) and any impairment losses.