On January 1, 2019, SymboNet Company completed its acquisition of NetOpen.As part of the acquisition, $2 million was allocated to goodwill.What is SymboNet's amortization deduction related to the goodwill for 2019?

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that represents the excess price paid for an acquisition over the fair market value of the net assets acquired. It is not amortized but is tested for impairment annually. Therefore, the amortization deduction for goodwill is $0.

On January 1, 2019, SymboNet Company Completed Its Acquisition of NetOpen.As