Which of the Following Statements Is True Regarding Goodwill

question 86

Multiple Choice

Which of the following statements is true regarding goodwill?

• A) For accounting purposes, goodwill may be amortized over a period not to exceed 40 years.
• B) For accounting purposes, goodwill may be amortized over a period not to exceed 20 years.
• C) For tax purposes, goodwill amortization cannot be deductible.
• D) For tax purposes, goodwill amortization may be deductible over a 20-year period.
• E) For tax purposes, goodwill amortization may be deductible over a 15-year period.

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Definitions:

Monitors

Devices or people appointed to observe, check, and keep a continuous record of a process or situation.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.

Middle-school/junior-high

Educational institutions that provide schooling for preteen and early teenage students, often encompassing grades 6 through 8.

Early-childhood

A period in human development from birth up to approximately 8 years, characterized by rapid physical and mental growth.