_____ Goodwill must be accounted for in which of the following manners?
A) Charge to stockholders' equity at the business combination date.
B) Capitalize as an asset never to be amortized or written down.
C) Capitalize as an asset always to be amortized.
D) Capitalize as an asset to be amortized only if its value becomes impaired.
E) Capitalize as an asset to be written down only if its value becomes impaired.

Question

Quizplus · Accepted Answer

Goodwill is capitalized as an asset and is not amortized but is tested annually for impairment. If impaired, it is written down.

_____ Goodwill Must Be Accounted for in Which of the Following