Which of the Following Income Factors Should Not Be Considered

question 3

Multiple Choice

Which of the following income factors should not be considered in expected future income when estimating the value of goodwill?​

• A)​sales for the period
• B)​income tax expense
• C)​extraordinary items
• D)​cost of goods sold

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Definitions:

Convertible Bond

A corporate bond that can be converted into a predetermined number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.

Bondholder

An investor or entity that owns bonds issued by a corporation or government, holding a claim on the issuer's assets and income.

Unamortized Discount

The portion of a bond's issuance discount that has not yet been amortized or written off over the life of the bond.

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, which are debt securities establishing an obligation to pay back the principal along with interest by a specified date.