Develop a memo to me, your supervisor at work, which addresses the topic. Your introduction should sufficiently describe the topic and the goal of your research.

Our company, publically traded on the NYSE, is thinking about buying one of our suppliers, which we expect will result in a significant amount of goodwill due to expected synergies the supplier developed of the years. It is the first purchase for our company and nobody is sure of the accounting requirements.The accounting staff disagrees on how the company accounts for the goodwill. The older staff remembers an annual charge to amortize the goodwill, which will cause decreased future reported income. Other younger accounts claim that accounting for goodwill has changed.

In your memo provide a working definition of goodwill, resolve the issue above, and discuss the quantitative impairment tests.Finally, discuss how to handle the deferred taxes on the suppliers balance sheet.

These assignments require research in official accounting literature, which is a skill you will need on the CPA exam. To earn full credit you must cite the standard and paragraph when you are providing solutions to you problem.