Which of the Following Statements About Accounting for Goodwill Under

Multiple Choice

Which of the following statements about accounting for goodwill under GAAP is correct?

A) Usually, goodwill is recognized each year by profitable companies, based on estimates of the value of their reputation and customer loyalty.
B) Goodwill is typically recorded based on an appraisal report on goodwill.
C) Goodwill is recorded when a company buys another, and the value of the goodwill equals the difference between the purchase price and the value of the identifiable assets and liabilities purchased.
D) Once recorded, goodwill is never checked for impairment.