Company a Buys Company B for $3,500,000

question 24

Multiple Choice

Company A buys Company B for $3,500,000. Company A had a pre-merger net worth of $8,000,000; Company B's net worth was $2,000,000. The transaction was accounted for as a pooling of interests. Company A wants to write off any available goodwill as slowly as allowable.
-Over how many years can goodwill be written off for accounting purposes?

• A) 0 years
• B) 20 years
• C) 40 years
• D) 50 years

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