Which of the following is an example of a company exercising the accounting concept "goodwill"?
A. An American accounting firm uses the "first in, first out" method to make a company appear less profitable.
B. A German car company establishes a reserve account to pay for lawsuits it predicts will be filed in the future.
C. A Japanese media company purchases a competitor for more than its book value and writes off the excess payment.
D. The English government turns over its public transportation agencies to private contractors to improve efficiencies.
E. A French steel company operating in Venezuela is nationalized by the government without any compensation.
Answer: C