Xtra Company purchased goodwill from Argus for $144,000. Argus had developed the goodwill over 6 years. How much would Xtra amortize the goodwill for its first year?
A) $8,640
B) $24,000
C) Goodwill is not amortized.
D) Not enough information.

Question

Quizplus · Accepted Answer

Goodwill is not amortized under current accounting standards; instead, it is tested annually for impairment.

Xtra Company Purchased Goodwill from Argus for $144,000