The intangible asset goodwill may be
A) capitalized only when purchased.
B) capitalized either when purchased or created internally.
C) capitalized only when created internally.
D) written off directly to retained earnings.

Question

Quizplus · Accepted Answer

Goodwill can only be capitalized when it is purchased, typically as part of the acquisition of another business. It is not capitalized when created internally because it is difficult to measure the cost directly associated with its creation.

The Intangible Asset Goodwill May Be