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 Corporation may amortize.
A) $16,667
B) $26,667
C) $33,333
D) $100,000
E) None of the above

Question

Quizplus · Accepted Answer

Goodwill is not amortized for accounting purposes. It is tested annually for impairment.

During the Past Two Years, Through Extensive Advertising and Improved