Amber Ltd Acquired Luna Ltd

Multiple Choice

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

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