CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Assuming that you believe a particular company has internally-generated goodwill, which of the following costs would you capitalize and then amortize over their estimated useful lives?
A. Internally-generated goodwill should never be capitalized.
B. Both the costs of maintaining and restoring the goodwill
C. The cost of maintaining the goodwill
Explanation: The only way that goodwill can be capitalized is when it is purchased as part of a company. It is the excess of the price paid for the business over the market value of its net assets.

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