When It Comes to Transferring Goodwill in a Business Valuation,goodwill

question 106

Multiple Choice

When it comes to transferring goodwill in a business valuation,goodwill:

• A)is considered an intangible asset and therefore not taxed.
• B)can be used as a deduction by the seller.
• C)is taxed for the seller as capital gains.
• D)cannot be used as a deduction by the buyer because it is a capital asset.

---

Definitions:

Reticular Formation

A network of neurons in the brainstem involved in consciousness and alertness.

Clock Radio

An electronic device that combines the features of a clock with a radio, often used as an alarm.

Substantia Nigra

Black nuclear mass in the midbrain; involved in coordinating movement and maintaining muscle tone.

Basal Nuclei

A group of nuclei in the brain involved in the control of voluntary motor movements, procedural learning, and emotions.