QUESTION 20 Which of the following is true of goodwil? goodwill is properly classified as a long to investment on a classified balance sheet al corporations may amore goodwill over a pened not to exceed ten years when a business is purchased goodwill is the excess of the cost over the fair value of the net assets assets essais cured O goodwill may be sold individually like other assets in a business such as a patent or copyright 3 QUESTION 21 Entity I needs to raise 51 milion to finance a plant expansion An advantage of moting this requirement by issuing shares of common stock rather than issuing bonds payable is that Din arriving at net income, the company will be ablo to deduct dividonds paid on common stock the company will be able to deduct for tax purposes any dividends on common stock with common stock the company may choose to pay low of no dividends existing shareholders will be required to purchase more common stock to retain the same percentage ownership of the company