The Fair Market Value of Lewis Company's Net Identifiable Assets

Multiple Choice

The fair market value of Lewis Company's net identifiable assets is $5,000,000.Martin Corporation purchases Lewis' entire business for $5,800,000.Which of the following statements is not correct?

A) Martin Corporation paid $800,000 for goodwill generated by Lewis Company.
B) Martin feels that Lewis Company has the ability to generate earnings in excess of a normal return on net identifiable assets.
C) Martin will record amortization expense over a period not to exceed 40 years.
D) Martin Corporation will record $800,000 to goodwill,an intangible asset,which will be reported in its balance sheet.