Which of the Following Is the Proper Accounting Treatment for Purchased

Multiple Choice

Which of the following is the proper accounting treatment for purchased goodwill?

A) Goodwill must be expensed when acquired.
B) Goodwill must be capitalised when acquired and amortised over 70 years or less.
C) Goodwill must be capitalised when acquired and amortised over 20 years or less.
D) Goodwill must be capitalised when acquired and expensed each year to the extent that the value has declined.