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How Is Goodwill Accounted for Subsequent to Acquisition

Question 24

Multiple Choice

How is goodwill accounted for subsequent to acquisition?


A) It is amortized over its estimated useful life.
B) It should be written off as soon as possible against retained earnings.
C) It should be written off as soon as possible as an expense.
D) It should not be amortized because it has an indefinite life.

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