Question

goodwill is to be valued whaen_____ a) almagamation take place. b) one company takes over another company. c) a partner is admitted. d) all of the above ​

Answer 1

Answer:

the correct answer is (c)

Answer 2

Answer:

The correct answer is Option D: all of the above.

Explanation:

Goodwill:

• Although it cannot be seen or touched, goodwill is a tangible asset that can be bought, sold, and traded.

• Some examples of goodwill include the value of an organization's brand name, strong customer base, useful consumer associations, positive employee affiliations, and any patents or proprietary technology.

Valuation of goodwill:

• First, the valuation of goodwill is required in the case of a partnership whenever there is an admission, retirement, death, merger, or change in the profit-sharing ratio.

• Second, goodwill appraisal is important when two or more businesses merge, when one business absorbs another, when one business seeks to acquire a controlling stake in another, or when the government takes over the operation.