Goodwill arises when a parent company must pay more to acquire a subsidiary company than the market value of the subsidiary's net assets.

Name: Goodwill arises when a parent company must pay more to acquire a subsidiary company than the market value of the subsidiary's net assets.
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Question

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Goodwill is an intangible asset that represents the excess amount paid over the fair market value of a company's identifiable net assets during an acquisition.

Goodwill Arises When a Parent Company Must Pay More to Acquire