With Respect to the Treatment of Goodwill in the Analysis

Multiple Choice

With respect to the treatment of goodwill in the analysis of a company and determining the return on invested capital (ROIC) ,which of the following is most accurate?

A) Treat goodwill impairments as operating and subtract cumulative impairments from goodwill on the balance sheet.
B) Treat goodwill impairments as operating and add back cumulative impairments to goodwill on the balance sheet.
C) Treat goodwill impairments as nonoperating and add back cumulative impairments to goodwill on the balance sheet.
D) Treat goodwill impairments as nonoperating and subtract cumulative impairments from goodwill on the balance sheet.