Acquired Goodwill Is Considered to Be a Section 197 Asset

question 32

True/False

Acquired goodwill is considered to be a Section 197 asset amortized over 15 years for tax purposes.

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific production jobs or batches, making it possible to track the cost of each job individually.

Direct Labor Costs

Wages paid to workers directly involved in manufacturing a product or providing a service.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, materials, and overhead.

Job-Order Costing

A cost accounting system used to accumulate costs per job or order rather than a process, suitable for customized orders.