The entry that establishes goodwill upon consolidation is an):

Question

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Goodwill is not an actual asset that can be recorded on the books, but it is recognized upon consolidation when one company acquires another company for a price greater than the fair market value of the net assets acquired. To eliminate any double counting, an elimination entry is made to remove the excess amount paid for the acquired company and to recognize the goodwill. This elimination entry helps establish goodwill upon consolidation.

The Entry That Establishes Goodwill Upon Consolidation Is An)