Accountancy, asked by geethikakarnam9, 4 months ago

how calculate goodwill​

Answers

Answered by radheshyam6441
7

Answer:

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Explanation:

To calculate goodwill, the fair value of the assets and liabilities of the acquired business is added to the fair value of business' assets and liabilities. The excess of price over the fair value of net identifiable assets is called goodwill. Goodwill Calculation Example: Company X acquires company Y for $2 million.

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