How is negative goodwill accounted for under U.S.GAAP?
A)There is no rule for negative goodwill, because there is no such thing.
B)It is capitalized and amortized over a period of no more than 40 years.
C)It is treated as an extraordinary loss on the consolidated income statement.
D)It is treated as an extraordinary gain on the consolidated income statement.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, negative goodwill is recognized as a gain in the income statement at the acquisition date.

How Is Negative Goodwill Accounted for Under U.S.GAAP