A Newly Acquired Subsidiary Has Pre-Existing Goodwill on Its Books

Multiple Choice

A newly acquired subsidiary has pre-existing goodwill on its books. The parent company's consolidated balance sheet will:

A) treat the goodwill the same as other intangible assets of the acquired company.
B) will always show the pre-existing goodwill of the subsidiary at its book value.
C) not show any value for the subsidiary's pre-existing goodwill.
D) do an impairment test to see if any of it has been impaired.