Answer:
The correct answer is (e)
Explanation:
An ethical dilemma is a decision problem where a person has to make a decision which is neither acceptable nor preferable. In the above scenario, Bobs facing ethical dilemma where he has the option to take action against a friend or to avoid it to safe company's image. Both these decisions are unfavourable for bob but he has to make one.
Solution:
The reporting unit's book value of $250 million meets the market value of $220 million.
Requirement 1:
Determination of implied fair value of goodwill:
Fair value of Center point, Inc. $220 million
Fair value of Center point’s net assets (excluding goodwill) 200 million
Implied fair value of goodwill $ 20 million
Measurement of impairment loss:
Book value of goodwill $62 million
Implied fair value of goodwill 20 million
Impairment loss $42 million
Requirement 2: If the operating unit's market valuation of 270 million dollars surpasses 250 million dollars, there is no depreciation risk.
Fixed Costs is the answer
Answer B : Truth in Lending Act