Goodwill is a(n) _ on the _.
A) intangible asset; subsidiary's balance sheet
B) long-term investment; consolidated balance sheet
C) current asset; subsidiary's balance sheet
D) intangible asset; consolidated balance sheet

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that arises when one company acquires another company for a price that is greater than the fair market value of the net assets acquired. Goodwill is reported on the consolidated balance sheet of the acquiring company, as it reflects the premium paid for the acquisition. It is not reported separately on the subsidiary's balance sheet.

Goodwill Is A(n) _ on the _