17 July 2013
Goodwill is the excess of purchase price over the fair market value of a company's identifiable assets and liabilities. How It Works/Example:
Goodwill is created when one company acquires another for a price higher than the fair market value of its assets; for example, if Company A buys Company B for more than the fair value of Company B's assets and debts, the amount left over is listed on Company A's balance sheet as goodwill.
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