When Consolidating Parent and Subsidiary Financial Statements, Which of the Following

question 67

Multiple Choice

When consolidating parent and subsidiary financial statements, which of the following statements is true?

• A) Goodwill is never recognized.
• B) Goodwill required is amortized over 20 years.
• C) Goodwill may be recorded on the parent company's books.
• D) The value of any goodwill should be tested annually for impairment in value.
• E) Goodwill should be expensed in the year of acquisition.