Identify the Incorrect Statement Regarding the Differences in the Treatment

Identify the incorrect statement regarding the differences in the treatment of goodwill across countries.

A) When one company acquires another in a takeover,the value of the goodwill is calculated as the amount paid for a firm above its book value.
B) Accounting rules in many countries allow acquiring firms to deduct the value of goodwill from the amount of equity or net worth reported on their balance sheet.
C) Since 2001,the U.S.requires that goodwill associated with acquisitions has to be amortized against earnings.
D) In the United States,until recently goodwill has had to be deducted from the profits of the acquiring firm over as much as 40 years.