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Problem 1: Which of the following regarding goodwill is correct?
a) Goodwill should be amortized over a five-year period.
b) Goodwill should be amortized over its expected useful life.
c) Goodwill should be recorded and never adjusted.
d) Goodwill should be recorded and periodically evaluated for impairment.
Problem 2: The cash surrender value of the insurance policy on the corporation's president would be presented on the balance sheet as:
a) cash
b) marketable securities
c) long-term investment
d) prepaid expense
Inventory Costing Method
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Assume Victor will itemize deductions in 2010 (and that this was Victor's only personal casualty). What is the casualty loss amount that Victor may actually deduct on his return?
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