Which of the Following Is the Proper Accounting Treatment for Purchased

question 29

Multiple Choice

Which of the following is the proper accounting treatment for purchased goodwill?

• A)Goodwill must be expensed when acquired.
• B)Goodwill must be capitalised when acquired and amortised over 70 years or less.
• C)Goodwill must be capitalised when acquired and amortised over 20 years or less.
• D)Goodwill must be capitalised when acquired and expensed each year to the extent that the value has declined.