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To: Investor2 who wrote (4676)4/22/1999 4:54:00 PM
From: Boca_PETE  Respond to of 15132
 
I2: RE:< shortening the goodwill amortization period >

Will result in lower period earnings as a result of higher amortization charges each period.

The book value of the acquiring company will be higher as a result of the investment in the acquired company being recorded at fair value. Fair value in excess of book value of the acquired company = "goodwill".

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