Goodwill is a capital asset that the business buyer cannot depreciate or amortize for tax purposes.

Question

Quizplus · Accepted Answer

Goodwill represents the value of a company's brand reputation and customer loyalty, and it is considered an intangible asset that cannot be depreciated or amortized for tax purposes by the business buyer. Goodwill can only be recognized on the buyer's books when purchasing another business for a price higher than the fair market value of its tangible assets.

Goodwill Is a Capital Asset That the Business Buyer Cannot