Evers Company's Balance Sheet Shows a Trade Name Acquired as Part

Multiple Choice

Evers Company's balance sheet shows a trade name acquired as part of a business combination with a carrying value of $60 million.The trade name has an indefinite life and therefore Evers does not amortize it.Negative publicity regarding the product carrying the trade name has reduced its fair value to $48 million and its value in use to $44 million.The entry is as follows:

A) Loss on Impairment ..................................16,000,000
Trade Name ............................................16,000,000

B) Loss on Impairment ...................................12,000,000
Trade Name ............................... .............12,000,000

C) Loss on Impairment ...................................8,000,000
Trade Name ..............................................8,000,000

D) Trade Name ........................................12,000,000
Loss on Impairment .......................................12,000,000

E) Trade Name ........................................16,000,000
Loss on Impairment ...................................... .16,000,000