Using the acquisition method for a business combination, goodwill is generally calculated as the:

Multiple Choice

• Cost of the investment less the subsidiary's book value at the beginning of the year.
• Cost of the investment less the subsidiary's book value at the acquisition date.
• Cost of the investment less the subsidiary's fair value at the beginning of the year.
• Cost of the investment less the subsidiary's fair value at acquisition date.
• Zero, it is no longer allowed under federal law.