Brynlee paid $500,000 for a company, $100,000 in excess of the book value.Brynlee has ______.
A)$100,000 of expenses
B)paid $100,000 too much for this company
C)goodwill of $100,000
D)badwill of $100,000

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that represents the value of a company's brand, reputation, customer relationships, and other factors that contribute to its overall value. When Brynlee paid $100,000 in excess of the book value of the company, it means that she paid for intangible assets such as goodwill. Therefore, the correct choice is C.

Brynlee Paid $500,000 for a Company, $100,000 in Excess of the Book