Multiple Choice
DLT, a German firm, acquired a foreign corporation for a purchase price of $500 million. The book value of the net assets was stated at $350 million, but the fair market value of the net assets is $420 million. Assume the useful life of the goodwill to be 10 years. If the goodwill is systematically amortized over its useful life, what would be the amount per year?
A) $15 million per year
B) $8 million per year
C) $7 million per year
D) Goodwill cannot be systematically amortized in Germany.
Correct Answer:
Verified
Correct Answer:
Verified
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