Goodwill represents:
A) the synergies that will be achieved through the acquisition.
B) the difference between the acquisition cost and the market value of the identifiable assets and liabilities.
C) the difference between the acquisition cost and the book value of the identifiable assets and liabilities.
D) the merger premium.

Question

Quizplus · Accepted Answer

Goodwill is the excess of the purchase price over the fair market value of the identifiable net assets acquired in a business combination.

Goodwill Represents