The amount of goodwill arising from this business combination is

Name: The amount of goodwill arising from this business combination is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Goodwill is calculated as the excess of purchase consideration over the fair value of net assets acquired. In this case, purchase consideration is $750,000 and the fair value of net assets acquired is $563,333 ($300,000+ $60,000+ $100,000+ $98,333+ $5,000). Therefore, goodwill arising from this business combination is $186,667 ($750,000 - $563,333).

The Amount of Goodwill Arising from This Business Combination Is