Goodwill is:
A)Amortized over the greater of its estimated life or forty years.
B)Only recorded by the seller of a business.
C)The excess of the fair value of a business over the fair value of all net identifiable assets.
D)None of these.

Question

Quizplus · Accepted Answer

Goodwill is the excess of the fair value of a business over the fair value of all net identifiable assets. It is recorded by the acquirer of a business (not just the seller), and is tested for impairment annually or whenever there is a triggering event. Goodwill is not amortized but is subject to impairment testing.

Goodwill Is