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 should be capitalized and amortized over a period of no more than 40 years.
C)It should be treated as an extraordinary loss on the consolidated income statement.
D)It should be treated as an extraordinary gain on the consolidated income statement.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, negative goodwill, which occurs when the purchase price is less than the fair value of net assets acquired, is recognized as a gain in the income statement.

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