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Law Incorporation [45]
3 years ago
12

Help please quick now

Social Studies
1 answer:
Vikki [24]3 years ago
8 0

Answer: a

Explanation:

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When the value of goodwill goes down, it is generally due to decreased brand value, negative market information about he company or the need to adjust for overpaying for the company. Before 2002, goodwill was amortized on the balance sheet -- like a patent, or copyright.
The rules changed in 2001. Since goodwill isn't automatically amortized, it doesn't effect net income and thus profitability. This changes, however, if a company concludes that the amount of goodwill on its books is overstated and a portion of it must be written off.
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