1. Which statement is true concerning U. S. GAAP for the qualitative evaluation of goodwill? A. You don't have to quantitatively evaluate goodwill for impairment if it is more likely than not that the reporting unit's fair value is less than its book value. B. You don't have to quantitively evaluate goodwill for impairment if it is more likely than not that the reporting unit's book value is less than its fair value. C. You don't have to quantitatively evaluate goodwill for impairment if the acquired subsidiary is expected to continue operating in the foreseeable future. D. The qualitative goodwill evaluation is based on general information on the economy, rather than specific information about the reporting unit's performance.

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?