Using the Acquisition Method for a Business Combination, Goodwill Is

Multiple Choice

Using the acquisition method for a business combination, goodwill is generally calculated as the:

A) Cost of the investment less the subsidiary's book value at the beginning of the year.
B) Cost of the investment less the subsidiary's book value at the acquisition date.
C) Cost of the investment less the subsidiary's fair value at the beginning of the year.
D) Cost of the investment less the subsidiary's fair value at acquisition date.
E) Zero, it is no longer allowed under federal law.