When one company acquires another in a takeover,the value of the goodwill is calculated as the amount paid for a firm above its book value.

Name: When one company acquires another in a takeover,the value of the goodwill is calculated as the amount paid for a firm above its book value.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

Goodwill is the difference between the value of assets and liabilities of the acquired company and the price paid for it. It is calculated as the amount paid for a firm above its book value.

When One Company Acquires Another in a Takeover,the Value of the Goodwill