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A company has the following expenditures during the year. Advertising $ 200,000 Employee training 25,000 Customer outreach and consultation 175,000 The company believes that these efforts have increased the fair value of the entire company by $50,000. How much goodwill can the company recognize at the end of the year associated with these expenditures

1 Answer

2 votes

Answer:

$0

Step-by-step explanation:

Given that;

Advertising expenses = $200,000

Employee training = $25,000

Consumer outreach and consultation = $175,000

Since it is mentioned that this cost would be increased, the fair value of the entire company by $50,000

Hence, there is no information related to the takeover of the business. This implies that the goodwill recognized by the company is zero

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