Short Corporation acquired Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $48,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?
A) $100,000.
B) $400,000.
C) $200,000.
D) $0.

Question

Quizplus · Accepted Answer

Goodwill is not amortized.

Short Corporation Acquired Hathaway, Inc