Goodwill should:

1. be written off as soon as possible against retained earnings.
2. absent impairment, not be written off because it has an indefinite life.
3. written off as soon as possible as an expense.
4. amortized over a maximum of forty years.

For accounting purposes, goodwill:

1. is recorded whenever a company achieves a level of net income that exceeds the industry average.
2. is recorded when a company purchases another business.
3. is expensed in the period it is recorded because benefits from goodwill are difficult to identify.
4. is never recorded.