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The first examination of RR Corporation's financial statements was made for the year ended December 31, 20x4. The auditor found that RR had acquired another
The first examination of RR Corporation's financial statements was made for the year ended December 31, 20x4. The auditor found that RR had acquired another company on January 1,20x4, and had recorded goodwill of 100000 in connection with this acquisition. Although a friend of the auditor believes the goodwill will last no more than five years, RR's management has found no impairment of goodwill during 20x4. In its 20x4 financial statements, RR should report:
Amortization; Goodwill
a. 0; 100000
b. 100000; 0
c. 20000; 80000
d. 0; 0
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