Question

Under what circumstances does goodwill arise

Answer 1

Answer:

Explanation:

Goodwill arises when a company acquires another entire business. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets that can be identified, and the liabilities obtained in the purchase.

Answer 2

Answer:

Explanation:

Circumstances arises Goodwill:

1. Quality of product

2. Efficiency of management

3. Location

4. Market conditions

5. Special advantages