an asset is claaified as goodwill on the balance sheet when
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QUESTION 10 / 11 An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value. According to GAAP, you can adjust goodwill when ______________SELECT ONLY ONE an asset is sold stock prices go down a new asset is purchased stock prices go up goodwill is impaired
We have reviewed the topic of Goodwill on the Balance Sheet which is created when a company acquires another and pays more than the market value of the acquired company's net assets. What I want you to address in this discussion board are the following: What type of "event" results in goodwill being recorded on a company's balance sheet? How is goodwill evaluated to determine whether this specific asset is impaired? If it is deemed to be impaired, what actions...
which of the following best describes the accounting for goodwill acquired in business acquisition? a. Goodwill can be recorded by a company when it can demonstrate that the company has generated excess market value directly attributable to its strong reputation b. Goodwill is recorded as an asset when the purchaser of a business believes that the purchased business has a good reputation among its customers c. Goodwill is recorded as an asset when the purchaser of a business pays less...
Goodwill: Multiple Choice A. is classified on the balance sheet as a current asset. B. is initially measured as the difference between the consideration given in an acquisition and the fair value of the separately identifiable net assets acquired on the acquisition date. C. is a tangible asset recognized as part of a business combination. D. is not subject to impairment.
Which of the following is not true about goodwill ? Goodwill must be written off over 20 years. Goodwill must be checked for impairment at least annually. The loss of key customers could impair the value of goodwill. Goodwill does not have to be amortized. Goodwill is shown as an asset on the balance sheet. Which of the following are not true of net operating loss carrybacks and carryforwards? Net operating loss carrybacks enable firms to recover previous taxes paid....
Goodwill is defined as the amount by which a company’s value exceeds the value of its individual assets and liabilities. Goodwill is only recorded when a company or business segment is purchased. Good will is not amortized. Goodwill includes such things as a skilled workforce, good customer relations, and good location. If a company has never purchased another company then goodwill cannot appear on its balance sheet. Do you think this is a good accounting practice? Provide in 250 words,...
question 11 11. How is goodwill determined at the date of acquisition? Describe the nature of goodwill. 12. When must an intangible asset be shown separately from goodwill? What are the criteria for reporting these intangible assets separately from goodwill?
On January 1, 2017, Cullumber Company had a balance of $359,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $313,950. July 1 Acquired a 8-year franchise; expiration date July 1, 2,025, $583,200. Sept. 1 Research and development costs $176,500. Make an entry as of December 31, 2017,...
IS GOODWILL AN EXPENSE DISGUISED AS AN ASSET? analyze the write-off of the $23 Billion in GOODWILL by General Electric (GE).....Is there really an ASSET called GOODWILL????....Should Goodwill be recorded as an EXPENSE????
The reported goodwill on the Balance Sheet may reveal managers’ private information of a firm’s future cash flows. However, research argues that subsequent treatment of goodwill may provide opportunities for earnings management. Discuss whether the accounting treatment of goodwill in subsequent years could be a concern for financial reporting.