单选题 GTO Corporation purchased all of the common stock of Charger Company for $ 4 million. At the time, Charger reported total assets of $ 3 million and total liabilities of $ 1 million. At the acquisition date, the fair value of Charger' s assets was $ 3.5 million and the fair value of Charger' s liabilities was $1.3 million. What amount of goodwill should GTO report as a result of the acquisition and is it necessary for GTO to amortize the goodwill? Goodwill Amortization required ①A. $1.8 million Yes ②B. $1.8 million No ③C. $ 2.2 million No

A、

A. ①
B、

B. ②
C、

C.③

【正确答案】 B

【答案解析】The acquisition goodwill is equal to $1.8 million [ $ 4 million purchase price $ 2.2 million fair value of net assets acquired ( $ 3.5 million assets at fair value $1.3 million liabilities at fair value) 1. Under IFRS or U. S. GAAP, goodwill is not amortized but is subject to an annual impairment test.