3. FASBs general rule is that goodwill should not be amortized. However, in 2014, the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
3. FASBs general rule is that goodwill should not be amortized. However, in 2014, the FASB made a standard that allows nonpublic companies to amortize goodwill over 10 years. Can you see any reasons why amortization might make sense for private companies, either from the point of view of making bookkeeping easier, or of better reflecting economic reality? (7.5 points)
4. If you were in charge of accounting at a parent company, would you choose to account for investments in subsidiaries using the initial value method, the partial equity method, or the cost method? Give a reason for your choice. (7.5 points)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
