How Is Negative Goodwill Reported on Financial Statements

question 15

Multiple Choice

How is negative goodwill reported on financial statements?

• A)On the consolidated SFP as "an excess of fair value over cost of assets acquired" under shareholders' equity
• B)On the consolidated SFP as "negative goodwill" between the liabilities and shareholders' equity
• C)On the consolidated SCI as "negative goodwill"
• D)On the consolidated SCI as a "gain on bargain purchase"

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Undesirable outcomes or effects that result from an action or decision.

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