In accounting,goodwill

Question

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Goodwill is recorded when a company purchases another business at a price that exceeds the fair market value of the identifiable assets and liabilities acquired. It represents the value of the acquired company's reputation, customer relationships, brand name, and other intangible assets that cannot be separately identified and measured. Goodwill is not amortized over its useful life, but is instead tested annually for impairment. Goodwill cannot be recorded based on a company's level of net income exceeding the industry average.

In Accounting,goodwill