A Newly Acquired Subsidiary Had Pre-Existing Goodwill on Its Books

question 16

Multiple Choice

A newly acquired subsidiary had pre-existing goodwill on its books.The parent company's consolidated balance sheet will

• A)not show any value for the subsidiary's pre-existing goodwill.
• B)treat the goodwill similarly to other intangible assets of the acquired company.
• C)not show any value for the pre-existing goodwill unless all other assets of the subsidiary are stated at their full fair value.
• D)always show the pre-existing goodwill of the subsidiary at its book value.

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