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Xtra Company Purchased a Business from Argus for $96,000 Above

Question 102

Multiple Choice

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets.Argus had developed the goodwill over 12 years.How much would Xtra amortize the goodwill for its first year?


A) not enough information to calculate amortization
B) $7,000
C) $8,000
D) goodwill is not amortized

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