Xtra Company purchased goodwill from Argus for $96,000. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?
A) $7,000
B) $ 8,000
C) Goodwill is not amortized.
D) Not enough information.

Question

Quizplus · Accepted Answer

Goodwill is not amortized under current accounting standards. Instead, it is tested for impairment annually.

Xtra Company Purchased Goodwill from Argus for $96,000