試題詳解

8. The fair market value of Lewis Company's net identifiable assets is $5,000,000. Martin Corporation purchases Lewis' entire business for S5,800,000. Which of the following statements is not correct?
(A) Martin Corporation paid S800,000 for goodwill generated by Lewis Company.
(B) Martin feels that Lewis Company has the ability to generate earnings in excess of a normal return on net identifiable assets.
(C) Martin will record amortization expense over a period not to exceed 40 years.
(D) Martin Corporation will record $800,000 to goodwill, an intangible asset, which will be reported in its balance sheet.