If the fair value of the net asset acquired is greater than the purchase price the amount is:
A)negative goodwill
B)contributed surplus
C)purchased goodwill
D)organizational costs

Question

Quizplus · Accepted Answer

If the fair value of the net asset acquired is greater than the purchase price, it means that the company paid less than the fair value of the assets acquired. This results in a negative goodwill, which is recognized as a gain in the financial statements.

If the Fair Value of the Net Asset Acquired Is