Question

Black, Inc., acquired another company for $5,000,000. The fair value of all identifiable tangible and intangible assets was $4,500,000. Black will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition

Answer 1

The correct answer is "Zero (0)".

Step-by-step explanation:

• An applies specifically asset which is responsible for a different corporation's or business's extra purchasing amount, is considered as Goodwill.
• Goodwill commodities are confidential, intellectual properties or copyright and trademark awareness that aren't commonly produced. Therefore it isn't amortized.

Thus, the above is the appropriate solution.