Goodwill results when:
A. a controlling interest is acquired.
B. the price of the acquisition exceeds the sum of the fair values of the net identifiable assets acquired.
C. the fair value of net assets acquired exceeds the acquisition price.
D. the price of the acquisition exceeds the book value of an acquired company.
Answer:B
Goodwill results when:
A. a controlling interest is acquired. B. the price of the acquisition exceeds the sum of the fair values of the net identifiable assets acquired. C. the fair value of net assets acquired exceeds the acquisition price. D. the price of the acquisition exceeds the book value of an acquired company.