Which of the following income factors should not be factored into an estimation of goodwill?
A) sales for the period
B) income tax expense
C) extraordinary items
D) cost of goods sold

Question

Quizplus · Accepted Answer

Extraordinary items are non-recurring and unusual events that should not be included in the estimation of goodwill, as they do not reflect the ongoing earning potential of a business.

Which of the Following Income Factors Should Not Be Factored