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yaroslaw [1]
3 years ago
8

Goodwill is: Group of answer choices Amortized over the greater of its estimated life or forty years. Only recorded by the selle

r of a business. The excess of the fair value of the consideration exchanged for the company over the fair value of net assets acquired. None of these.
Business
1 answer:
Tems11 [23]3 years ago
8 0

Explanation:

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. Goodwill does not include identifiable assets that are capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability regardless of whether the entity intends to do so. Goodwill also does not include contractual or other legal rights regardless of whether those are transferable or separable from the entity or other rights and obligations. Goodwill is also only acquired through an acquisition; it cannot be self-created. Examples of identifiable assets that are goodwill include a company’s brand name, customer relationships, artistic intangible assets, and any patents or proprietary technology. The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the net value of the assets minus liabilities. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched. Under US GAAP and IFRS, goodwill is never amortized, because it is considered to have an indefinite useful life. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to bring it down to its fair market value. However, an increase in the fair market value would not be accounted for in the financial statements. Private companies in the United States, however, may elect to amortize goodwill over a period of ten years or less under an accounting alternative from the Private Company Council of the FASB.

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7 0
3 years ago
Star​ Health, Inc. is a fitness center in Oklahoma City. In​ October, the company earned ​$550,000 in revenues and incurred the
Georgia [21]

Answer: $135.66

Explanation:

Given that,

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Trainer's Salary = ​22,500

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Unit cost per​ customer = \frac{Sum\ of\ all\ operating\ costs}{no.\ of\ customers}

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7 0
3 years ago
Ninth national bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. with a required reserve ratio of
hram777 [196]
We are asked to solve for the excess reserves. There are given values such as:
Checkable deposits = $ 150,000,000
Total reserves = $12,000,000
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Answer:

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3 years ago
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ElenaW [278]
The answer is b. Contractionary monetary policy



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3 years ago
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