How Is Negative Goodwill Accounted for Under U.S.GAAP

question 16

Multiple Choice

How is negative goodwill accounted for under U.S.GAAP?

• A)There is no rule for negative goodwill,because there is no such thing.
• B)It should be capitalized and amortized over a period of no more than 40 years.
• C)It should be treated as an extraordinary loss on the consolidated income statement.
• D)It should be treated as an extraordinary gain on the consolidated income statement.

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