Short Corporation purchased 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.Goodwill is not amortized.

Question

Quizplus · Accepted Answer

Goodwill is not amortized under current accounting standards. Instead, it is tested for impairment annually.

Short Corporation Purchased Hathaway, Inc