27. The intangible asset goodwill will appear on the financial statements of a publicly traded corporation when the corporation has acquired another company. Select one:

to. whose identifiable net assets have fair market value less than book value.

b. for a total purchase price that exceeds the book value of the identifiable net assets

c. for a total purchase price that exceeds the market value of the identifiable net assets.

d. for a total purchase price that exceeds the present value of future earnings of the acquired business

28. What accounting treatment (under U.S. GAAP) does a publicly traded corporation give to goodwill intangible assets when it purchases a business? Select one:

a. It is capitalized, not amortized, but it is reduced when impairment losses are recognized (impairment loss) and increased if previously recognized impairment losses are recovered.

b. It is capitalized and amortized over a maximum of 17 years or its useful life, whichever is shorter.

c. It is capitalized, not amortized, but it is reduced when impairment losses are recognized (impairment loss).

d. It is capitalized, not amortized, nor is it adjusted for impairment losses (impairment loss) if it falls in value permanently.