Purchased goodwill is the difference between the acquisition price of an acquired company and the fair value of its identifiable net assets.

Question

Quizplus · Accepted Answer

Purchased goodwill arises when a company acquires another company for a price higher than the fair value of its identifiable net assets. The difference between the acquisition price and the fair value of these assets is recognized as purchased goodwill on the balance sheet.

Purchased Goodwill Is the Difference Between the Acquisition Price of an Acquired