Goodwill may be recorded in which of the following circumstances?
A)When the property, plant and equipment of a business increase in value.
B)When a business earns a very high net income.
C)When one business purchases another business.
D)When a business sells property for more than its book value.

Question

Quizplus · Accepted Answer

Goodwill can only be recorded when one purchases another business for a price greater than the fair value of the business' net assets.

Goodwill May Be Recorded in Which of the Following Circumstances