Question

Classify Goodwill in two types

Answer 1

Explanation:

1. Purchased Goodwill

Purchased goodwill comes around when a business concern is purchased for an amount above the fair value of the separable acquired net assets. As a result, it is shown on the balance sheet as an asset—they are the only types of goodwill which can be recognized on a company’s accounts.

2. Inherent Goodwill

Inherent goodwill is the opposite of purchased goodwill and represents the value of a business more than the fair value of its separable net assets. This type of goodwill is internally generated and arises over time due to reputation, and it can be either positive or negative.

Answer 2

Answer:

non purchased goodwill and inherent goodwill.