6. Company C acquired Company A for $1,200,000. Fair value of current assets: $400,000. Fair value of long-term assets $1,150,000. Fair value of liabilities: $230,000. Retained earnings: $125,000. Calculate the goodwill/gain related to this acquisition.

Group of answer choices

$5,000 gain

$120,000 gain

$5,000 goodwill

$120,000 goodwill

7.

Which of the following is true?

Group of answer choices

None of the statements are true

Goodwill may have a definite life

Goodwill is amortized annually

Goodwill may be impaired