The appropriate way to amortize goodwill is:

A) Straight-line over a maximum of 40 years.

B) Goodwill is not amortized.

C) Diminishing-balance over a period not to exceed 20 years.

D) Over the estimated useful life of the goodwill.

E) Straight-line over a maximum of 20 years.

STU Company sold $12,000 worth of widgets with a one-year warranty. The company

estimates that 2% of the sales will result in warranty work. STU Company should:

A) Recognize warranty expense in the same year as the sale.

B) Recognize warranty expense at the time warranty work is performed.

C) Recognize warranty expense and liability in the same year as the sale.

D) Recognize warranty liability in the same year as the sale.