QUESTION 5

Jim's Company purchased goodwill from Yang for $144 000. Yang had developed the goodwill over six years. How much would Jim amortise the goodwill for its first year?

1. Cannot be determined

2. Goodwill is not amortised

3. 24,000

4. $8 640

QUESTION 6

Resources that are used in operations for more than one year with no physical substance are called?

1. Current assets

2. Intangible assets

3. Non-current assets

4. Property, Plant & Equipment