Question

Short Corporation acquired Hathaway, Inc., for $53,350,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $50,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition

Answer 1

$0

Step-by-step explanation:

Based on the information given No annual amortization of goodwill for this acquisition based on the fact that GOODWILL as an asset will remain forever because they won't dilapidate or worn out which is why GOODWILL are not amortized and Secondly we cannot see or touch GOODWILL which is why they are called intangible asset .

Therefore the annual amortization of goodwill for this acquisition will be $0.