Goodwill
A) is only recorded when generated internally.
B) can be subdivided and sold in parts.
C) can only be identified with the business as a whole.
D) can be defined as normal earnings less accumulated amortization.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that represents the excess of the purchase price over the fair market value of the identifiable assets acquired in a business combination. It cannot be subdivided and sold in parts and can only be identified with the business as a whole. Goodwill is not recorded when generated internally, and it is not defined as normal earnings less accumulated amortization. Therefore, the best choice is C.