Goodwill-financial reporting considerations
Cabot Corporation's statement of financial position at 31 December 2013 includes an asset entitled goodwill in the amount of $900,000, net of accumulated amortization.
(a) Briefly explain what is meant by the term goodwill.
(b) Under what circumstances is goodwill recorded in the accounting records? Include in your Answer a specific situation in which Cabot would have recorded the goodwill mentioned above.

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The Answer of Goodwill-financial reporting considerations
Cabot Corporation's statement of financial position at 31 December 2013 includes an asset entitled goodwill in the amount of $900,000, net of accumulated amortization.
(a) Briefly explain what is meant by the term goodwill.
(b) Under what circumstances is goodwill recorded in the accounting records? Include in your Answer a specific situation in which Cabot would have recorded the goodwill mentioned above.

Goodwill-Financial Reporting Considerations Cabot Corporation's Statement of Financial Position at 31 December 2013