(1 Palmetto Inc. is currently using the equity method to account for its 30% investment in Royal Company. In the acquisition last year of Royal Co. common stock, Palmetto calculated $1,000,000 of goodwill. The correct accounting for this goodwill during the current year is: Amortization over 40 years. Amortization over the anticipated holding period of the Royal Company stock. O Test for impairment at year-end. No accounting necessary.

Palmetto Inc. is currenty using the equity method to account for its 30% investment in Royal Company. in the acquisition last year of Royal Co. common stock, Paimetlo calculated $1,000,000 of goodwill. The correct accounting for this goodwil during the current year is: Amortization over 40 years: Amortization over the anticipated holding period of the Royal Company stock Test for impaiment at year-end No accounting necessary