Goodwill is:
A)Amortized over the greater of its estimated life or 40 years.
B)Only recorded by the seller of a business.
C)The excess of the fair value of a business over the fair value of all net identifiable assets.
D)None of the above.

Question

Quizplus · Accepted Answer

Goodwill is the excess of the fair value of a business over the fair value of all net identifiable assets. It is recorded by the purchaser of a business and must be tested for impairment annually. It is not amortized, but rather tested for impairment.

Goodwill Is