Goodwill is created when a purchase of assets is used in an acquisition if the purchase price per share is well above the book value per share and 75 percent of goodwill can be considered an eligible capital expenditure,which has a 7 percent CCA rate.

Question

Quizplus · Accepted Answer

Goodwill is created when the purchase price per share is well above the book value per share, and 75 percent of goodwill can be considered an eligible capital expenditure, which has a 7 percent CCA rate. Therefore, the statement is true.

Goodwill Is Created When a Purchase of Assets Is Used