When an entire business is purchased, goodwill is the excess of cost over the carrying amount of the net identifiable assets acquired.

Question

Quizplus · Accepted Answer

Goodwill represents the value of intangible assets such as a company's reputation, customer base, brand recognition, and patents. It is calculated as the excess of cost over the fair value of net identifiable assets acquired in a business purchase.

When an Entire Business Is Purchased, Goodwill Is the Excess