Goodwill-financial reporting considerations
Cabot Corporation's balance sheet at December 31,2015,includes an asset entitled goodwill in the amount of $900,000.
(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.

Question

Quizplus · Accepted Answer

The Answer of Goodwill-financial reporting considerations
Cabot Corporation's balance sheet at December 31,2015,includes an asset entitled goodwill in the amount of $900,000.
(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 Balance Sheet at December 31,2015,includes an Asset Entitled