For financial reporting purposes, goodwill: May be recorded whenever a company achieves a level of net...
- For financial reporting purposes, goodwill:
- May be recorded whenever a company achieves a level of net income that exceeds the industry average.
- Is amortized over its useful life.
- May be recorded when a company purchases another business.
- Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify.
Homework Answers
| For financial reporting purposes, goodwill May be recorded when a company purchases another business. |
| Goodwill arises when a company purchases another business and the amount of consideration paid exceeds the fair value of net assets acquired. |
| Option C is correct |
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For financial reporting purposes, goodwill:
May be recorded whenever a company achieves a level of net...
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over...
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over its useful life. O Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify. O May be recorded whenever a company achieves a level of net income that exceeds the industry average.
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be...
Goodwill should: be written off as soon as possible against retained earnings. absent impairment, not be written off because it has an indefinite life. written off as soon as possible as an expense. amortized over a maximum of forty years. For accounting purposes, goodwill: is recorded whenever a company achieves a level of net income that exceeds the industry average. is recorded when a company purchases another business. is expensed in the period it is recorded because benefits from goodwill...
How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax...
How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax purposes. ) It is not amortized for reporting purposes, but is amortized over a 5-year life for tax purposes. It is not amortized for tax purposes, but is amortized over a 5-year life for reporting purposes. Oo oo C ) It is not amortized for tax purposes, but is amortized over a 15-year life for reporting purposes. It is not amortized for reporting purposes,...
For financial statement purposes, goodwill created by an acquisition: Ο must be amortized on a straight-line...
For financial statement purposes, goodwill created by an acquisition: Ο must be amortized on a straight-line basis over 10 years. Ο must be reviewed each year and amortized to the extent that it has lost value. Ο O is expensed evenly over a 20-year period. Ο never affects the profits of the acquiring firm. Ο is recorded in an amount equal to the fair market value of the assets of the target firm
1. A company acquires a subsidiary and will prepare consolidated financial statements for extemal reporting purposes....
1. A company acquires a subsidiary and will prepare consolidated financial statements for extemal reporting purposes. For internal reporting purposes, the company has decided to apply the initial value method, Why might the company have made this decision? a. It is a relatively easy method to apply. 5. Operating results appearing on the parent's financial records rellect consolidated totals. c. GAAP now requires the use of this particular method for internal reporting purposes. d. Consolidation is not required when the...
Q20 Goodwill is an intangible asset That has a definite life and its cost should be...
Q20 Goodwill is an intangible asset That has a definite life and its cost should be amortized over its useful life. That is recorded when the company has projected earnings in excess of earnings expected for an investment in a similar company in the same industry. That is reviewed for impairment when circumstances indicate that impairment may have occurred. That is reviewed annually to determine whether impairment has occurred.
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Wember Company acquired a subsidiary company on December 31, 2012, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent...
Wember Company acquired a subsidiary company on December 31, 2012, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not...
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference....
In accounting, goodwill O May be recorded when a company purchases another business. Is amortized over its useful life. O Must be expensed in the period it is recorded because benefits from goodwill are difficult to identify. O May be recorded whenever a company achieves a level of net income that exceeds the industry average.
How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax purposes. ) It is not amortized for reporting purposes, but is amortized over a 5-year life for tax purposes. It is not amortized for tax purposes, but is amortized over a 5-year life for reporting purposes. Oo oo C ) It is not amortized for tax purposes, but is amortized over a 15-year life for reporting purposes. It is not amortized for reporting purposes,...
For financial statement purposes, goodwill created by an acquisition: Ο must be amortized on a straight-line basis over 10 years. Ο must be reviewed each year and amortized to the extent that it has lost value. Ο O is expensed evenly over a 20-year period. Ο never affects the profits of the acquiring firm. Ο is recorded in an amount equal to the fair market value of the assets of the target firm
1. A company acquires a subsidiary and will prepare consolidated financial statements for extemal reporting purposes. For internal reporting purposes, the company has decided to apply the initial value method, Why might the company have made this decision? a. It is a relatively easy method to apply. 5. Operating results appearing on the parent's financial records rellect consolidated totals. c. GAAP now requires the use of this particular method for internal reporting purposes. d. Consolidation is not required when the...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference....
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