Short corporation acquired hathaway, inc., for $52,000,000. the fair value of all hathaway's identifiable tangible and intangible assets was $48,000,000. short will amortize any goodwill over the maximum number of years allowed. what is the annual amortization of goodwill for this acquisition? $0. $100,000. $400,000. $200,000.

Answers

Goodwill is not amortized

Explanation:

In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142, Accounting for Goodwill and Intangible Assets, that goodwill was no longer permitted to be amortized.

correct option is a $0

Explanation:

given data

Acquisition value = $52,000,000

Fair value assets = $48,000,000

to find out

What is the annual amortization of goodwill for this acquisition

solution

we know that annual amortization of goodwill on a straight line basis over 40 years before 2001

and  FASB also issue statement about that it does not allow automatic amortization of goodwill

so it will be zero here as goodwill is not amortized here

so correct option is correct option is a $0



Do you know the answer?

Other questions on the subject: Business

Business, 22.06.2019, bommat1085
eral ledger of Fresh Bagel Manufacturing​ Company: Work in process inventory ​$0 Raw materials inventory $ 28 comma 000 Finished goods inventory $ 40 comma 100 Additional​ data: 1....Read More
1 more answers
Business, 22.06.2019, deisyy101
In the 10th grade, i was teamed up in a group of four. our project was on modern history. altho it seemed super hard for many of us. patrick fleming  took charge and showed us...Read More
3 more answers
Business, 22.06.2019, biasmi70
22.5 years will take to exhaust his fundsExplanation:Consider the following calculationsPV = 375,000, payment = -35,000, interest rate is 7.5%.FV = 0. Plugging these numbers into a...Read More
2 more answers