Quality Learning Support For Better Outcomes
First time here? Checkout the FAQs!
x
MathsGee is Zero-Rated (You do not need data to access) on: Telkom |Dimension Data | Rain | MWEB

1 like 0 dislike
10 views
What is goodwill?
in Accounting by Gold Status (12,547 points) | 10 views

1 Answer

0 like 0 dislike
Best answer

Goodwill is an asset that captures excess of the purchase price over fair market value of an acquired business. Let's walk through the following example: Acquirer buys Target for $500m in cash. Target has 1 asset: PPE with book value of \$100, debt of \$50m, and equity of \$50m = book value (A-L) of \$50m.

  • Acquirer records cash decline of $500 to finance acquisition
  • Acquirer's PP&E increases by $100m
  • Acquirer's debt increases by $50m
  •  Acquirer records goodwill of $450m
by Gold Status (12,547 points)

Related questions

1 like 0 dislike
1 answer
asked Jul 19 in Economics and Finance by Pieter Gold Status (12,547 points) | 10 views
0 like 0 dislike
1 answer
1 like 0 dislike
1 answer
0 like 0 dislike
1 answer
asked 1 day ago in Data Science & Statistics by Teddy Bronze Status (9,534 points) | 4 views
0 like 0 dislike
1 answer
asked Oct 17, 2019 in Accounting by MathsGee Diamond (78,880 points) | 50 views
Quick search syntax
tags tag:apple
author user:martin
title title:apple
content content:apple
exclude -tag:apple
force match +apple
views views:100
score score:10
answers answers:2
is accepted isaccepted:true
is closed isclosed:true

Join the MathsGee community and get study support for success - MathsGee provides answers to subject-specific educational questions for improved outcomes.



On MathsGee Answers, you can:


1. Ask questions
2. Answer questions
3. Comment on Answers
4. Vote on Questions and Answers
5. Donate to your favourite users

Enter your email address:

MathsGee Tools

Math Worksheet Generator

Math Algebra Solver

Trigonometry Simulations

Vectors Simulations

Matrix Arithmetic Simulations

Matrix Transformations Simulations

Quadratic Equations Simulations

Probability & Statistics Simulations

PHET Simulations

Visual Statistics

MathsGee ZOOM | eBook