intangilble asset - Goodwill
1 Answer(s)
Binny
Goodwill arises when a company pays more than book value for another company. The premium is classified as goodwill.
Suppose the company's book value is $1 million and the acquisition price was $10 million. Then the difference $9 million is the goodwill.
Dec 17 2013 04:36 PM
Suppose the company's book value is $1 million and the acquisition price was $10 million. Then the difference $9 million is the goodwill.