asked 134k views
5 votes
In recording the acquisition cost of an entire business:_________

(a) goodwill is recorded as the excess of cost over the fair value of identifiable net assets.
(b) assets are recorded at the seller's carrying amounts.
(c) goodwill, if it exists, is never recorded.
(d) goodwill is recorded as the excess of cost over the carrying amount of identifiable net assets.

1 Answer

4 votes

Answer: (a) Goodwill is recorded as the excess of cost over the fair value of identifiable net assets.

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