Xtra Company Purchased a Business from Argus for $96,000 Above

question 134

Multiple Choice

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?

• A) $7,000
• B) $8,000
• C) Goodwill is not amortized.
• D) not enough information to calculate amortization

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