Marvin Company purchased Marathon Company on August 31, 2016 and recorded goodwill. How will Marvin Company account for this goodwill in future accounting periods?
A) Marvin Company will amortize the goodwill over a 40-year life.
B) If the value of the goodwill increases in subsequent years, Marvin Company will increase the Goodwill account.
C) If the goodwill is impaired in subsequent years, Marvin Company will decrease the Goodwill account.
D) Marvin Company is not allowed to change the value of the Goodwill account.
Correct Answer:
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