Question

Goodwill is:

Amortized over the greater of its estimated life or forty years.
Only recorded by the seller of a business.
The value of a business as a whole, over and above the value of its net identifiable assets.
Recorded when created internally through advertising expense.

Answer 1

The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.

Step-by-step explanation:

Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.

It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.

If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.

However, goodwill can be characterized as something that can generate future profits for the company.