1. FASBs general rule is that goodwill should not be amortized. However, in 2014, the FASB made a standard that allows nonpublic companies to amortize goodwill over 10 years. Can you see any reasons why amortization might make sense for private companies, either from the point of view of making bookkeeping easier, or of better reflecting economic reality? (7.5 points)
2. If you were in charge of accounting at a parent company, would you choose to account for investments in subsidiaries using the initial value method, the partial equity method, or the cost method? Give a reason for your choice. (7.5 points)