Parent Company acquires Sub Company's common shares for cash.On the date of acquisition,Sub had Goodwill of $100,000 on its books.Which of the following statements regarding Sub's Goodwill on the date of acquisition is correct?

Question

Quizplus · Accepted Answer

Goodwill is not considered an identifiable asset because it cannot be separated from the business or sold independently. Therefore, it should be excluded from the acquisition differential calculation.

Parent Company Acquires Sub Company's Common Shares for Cash