Goodwill may be recorded when
A) it is identified within a company.
B) one company acquires another in a business combination.
C) the fair value of a company's assets exceeds their cost.
D) a company has exceptional customer relations.

Question

Quizplus · Accepted Answer

Goodwill is recorded when one company acquires another in a business combination. Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired in the transaction.

Goodwill May Be Recorded When