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16 October, 08:43

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.

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  1. 16 October, 08:47
    0
    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
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Home » Business » 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.
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