During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000.For the current year, determine the amount of goodwill Orange may amortize.
A)$100,000
B)$33,333
C)$26,667
D)$16,667
E)-0-.

Question

Quizplus · Accepted Answer

Goodwill generated internally (such as through advertising and improved customer relations) cannot be amortized for accounting purposes. Only goodwill acquired through the purchase of another business can be amortized.

During the Past Two Years, Through Extensive Advertising and Improved