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Which of the Following Is Not True Regarding SFAS No

Question 74

Multiple Choice

Which of the following is not true regarding SFAS No. 142?


A) Goodwill may be defined as the excess earning power of an acquisition.
B) Goodwill is defined as the difference between the amount paid for an acquired subsidiary and the fair market value of its individual net assets.
C) Tests of goodwill impairment must be made on an annual basis.
D) Because goodwill has an indefinite life, it is not subject to write-off as an expense.

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