When an entire business is purchased, goodwill is the excess of the purchase price over the carrying amount of the net identifiable assets acquired.

Name: When an entire business is purchased, goodwill is the excess of the purchase price over the carrying amount of the net identifiable assets acquired.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Goodwill is the excess of the purchase price over the fair value of the net identifiable assets acquired, not the carrying amount.

When an Entire Business Is Purchased, Goodwill Is the Excess