Which of the following income factors should not be considered in expected future income when estimating the value of goodwill?
A)sales for the period
B)income tax expense
C)extraordinary items
D)cost of goods sold

Question

Which of the following income factors should not be considered in expected future income when estimating the value of goodwill?​
A)​sales for the period
B)​income tax expense
C)​extraordinary items
D)​cost of goods sold

Quizplus · Accepted Answer

Extraordinary items are not considered in expected future income when estimating the value of goodwill because they are not expected to recur in the future and do not reflect the ongoing earning capacity of the business.

Which of the Following Income Factors Should Not Be Considered