Xtra Company Purchased Goodwill from Argus for $144,000

question 1

Multiple Choice

Xtra Company purchased goodwill from Argus for $144,000. Argus had developed the goodwill over 6 years. How much would Xtra amortize the goodwill for its first year?

• A) $8,640
• B) $24,000
• C) Goodwill is not amortized.
• D) Not enough information.

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