Goodwill from the purchase of another company appears on the consolidated balance sheet as a ________.
A) stockholders' equity item
B) part of the Investment in subsidiary
C) separate intangible asset account
D) component of other comprehensive income

Question

Quizplus · Accepted Answer

Goodwill is a separate intangible asset account that appears on the consolidated balance sheet when a company acquires another company. It represents the premium paid for the acquired company over its net tangible assets.

Goodwill from the Purchase of Another Company Appears on the Consolidated