Goodwill is recorded as an intangible asset when ________.
A) the fair value of a company's assets exceed the carrying value of those assets
B) the fair value of a company's assets are greater than the cost of acquiring that company
C) a company's exceptional quality, reputation, or capability enables it to generate exceptional earnings
D) one company acquires another company

Question

Quizplus · Accepted Answer

Goodwill is recorded as an intangible asset when one company acquires another company and the purchase price exceeds the fair value of the identifiable net assets of the acquired company.

Goodwill Is Recorded as an Intangible Asset When ________