Therefore, CAPEX is both amortized and depreciated, depending on whether it is tangible or intangible. To quote, "Expenses incurred to acquire intangible assets such as goodwill, patents, etc. are also capital expenditure.

As goodwill is a fixed intangible asset and its benefit will last for more than a year because it is the amount paid for the brand name of company.

Explanation:

In accounting, goodwill is an intangible asset that represents the excess amount paid for acquiring a business over its net tangible assets. It is the value of a company's brand name, reputation, customer base, and other intangible factors that contribute to its success.

The amount paid for acquiring goodwill is considered a capital expenditure. Here's why:

Capital Expenditure:
1. Long-term benefit: Goodwill is expected to provide long-term benefits to the company by enhancing its reputation and generating future economic benefits.
2. Enhancement of business: Acquiring goodwill helps enhance the business's performance and competitiveness in the market, leading to increased profitability.
3. Non-recurring: Goodwill is not a regular or recurring expense but an investment made by the company to strengthen its market position.
4. Added value: The amount paid for acquiring goodwill adds value to the company and its overall net worth.
5. Capitalization: Goodwill is recorded as an intangible asset on the balance sheet and is amortized over its useful life.

Revenue Expenditure:
1. Short-term benefit: Revenue expenditure refers to expenses incurred for day-to-day operations and maintenance of the business, providing short-term benefits.
2. Regular and recurring: Revenue expenditures are regular and recurring expenses necessary to keep the business running smoothly.
3. No addition to value: Revenue expenditures do not add value to the company but are necessary to maintain its current operations.

Deferred Capital Expenditure:
1. Timing of recognition: Deferred capital expenditure refers to capital expenditure that is recognized over multiple accounting periods rather than immediately.
2. Goodwill recognition: The amount paid for acquiring goodwill is recognized at the time of acquisition and not deferred over multiple periods.

Deferred Revenue Expenditure:
1. Timing of recognition: Deferred revenue expenditure refers to revenue expenditure that is recognized over multiple accounting periods rather than immediately.
2. Goodwill recognition: Goodwill is not a revenue expenditure as it is not incurred for day-to-day operations or maintenance but for acquiring intangible assets.

Therefore, the correct answer is option B) Capital expenditure as the amount paid for acquiring goodwill is a long-term investment that adds value to the company.