Which of the following is the amount capitalized as goodwill?

Question

Quizplus · Accepted Answer

Goodwill represents the excess of the cost of an acquired company over the sum of the market value of its net assets. This excess amount is considered to be the value of the goodwill generated by the transaction, as it represents the amount paid for intangible assets such as the company's reputation, brand, customer base, or intellectual property that are not separately identified and recorded on the balance sheet. Options B, C, and D are incorrect, as they use different measures to calculate the excess amount that do not take into account the market value of the net assets, book value of assets, or market value of assets.

Which of the Following Is the Amount Capitalized as Goodwill