The amount of goodwill appearing on the December 31, 2018 consolidated balance sheet would be:
A) Nil.
B) $10,000.
C) $20,000.
D)$30,000.

Question

Quizplus · Accepted Answer

Goodwill is only recorded when a company acquires another company and pays more than the fair value of its net identifiable assets. Without additional context or information about an acquisition, the default assumption is that there is no goodwill.

The Amount of Goodwill Appearing on the December 31, 2018