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

question 174

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

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