Goodwill was purchased when a business was acquired.When an impairment to the goodwill is determined, the credit is usually made to
A)the Goodwill account.
B)an Accumulated Amortization account.
C)a Deferred Credit account.
D)a shareholders' equity account.

Question

Quizplus · Accepted Answer

When goodwill is impaired, the impairment loss is recognized by crediting the Goodwill account to reduce its carrying amount on the balance sheet.

Goodwill Was Purchased When a Business Was Acquired