Question

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.

Answer 1

Goodwill should: A. be written off as soon as possible against retained earnings.

B. absent impairment, not be written off because it has an indefinite life.

C. written off as soon as possible as an expense.

D. amortized over a maximum of forty years

I was told that both A and D are NOT correct.... I felt that A and C were basically the same just adding a specific account type in A that is not on C.

Please explain the logic as to why these A is not correct. I also thought that D could be a correct answer because legally you are allowed to amortize it over a maximum of 40 years....

Please mark as brainliest