Annie develops a successful tax practice. She sells the practice to her friend Carol for $54,000 and

Question:

Annie develops a successful tax practice. She sells the practice to her friend Carol for $54,000 and moves to Florida to retire. The tax practice has no assets except intangible benefits such as the and going-concern value Annie has developed over the years. How should Carol treat the $54,000 cost of the tax practice she has purchased?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...