The Green Fiddle Has $48,000 of Goodwill on Its Books

question 45

Multiple Choice

The Green Fiddle has $48,000 of goodwill on its books as the result of the acquisition of The Blue Café.The acquisition has an estimated useful life of 25 years.If the acquisition were to be made today,the goodwill would be about $5,000 more than it was originally.What is the amount of goodwill amortization that needs to be deducted this year?

• A)$0
• B)$1,920
• C)−$5,000
• D)$5,000
• E)$200

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Definitions:

Spanish Government

The political system of Spain, typically referring to its executive branch, legislative bodies, and judicial processes under a parliamentary constitutional monarchy.

Lucrative Gifts

Items or services given that generate a significant amount of income or profit for the recipient.

Juan De Oñate

A Spanish conquistador, known for his role as a colonizer in the Southwest area of what is now the United States in the late 16th century.

Disgrace

The loss of reputation or respect as the result of a dishonorable action or failure to maintain moral standards.