Which of the Following Is the Amount Capitalized as Goodwill

question 155

Multiple Choice

Which of the following is the amount capitalized as goodwill?

• A) The excess of the cost of an acquired company over the sum of the market value of its net assets
• B) The excess of the cost of an acquired company over the sum of the book value of its assets
• C) The excess of the cost of an acquired company over the sum of the book value of its net assets
• D) The excess of the cost of an acquired company over the sum of the market value of its assets

---

Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Purchase

The action of buying goods or services.

Car

A car is a wheeled motor vehicle used for transportation, typically having four tires and powered by an internal combustion engine or electric motor.

Orange Crop

The yield of orange trees harvested in a particular area during a single growing season.