Unlike patents and copyrights, goodwill is not amortized because it is considered to have an indefinite life. Instead, the acquiring company measures the fair value of its acquired goodwill each year. If the goodwill has increased in fair value, there is nothing to record such as a gain on goodwill. However, if goodwill’s fair value has decreased, then the company records an impairment loss and goodwill must be written down. The correct answer is C.