Which of the Following Defines Goodwill Resulting from an Acquisition

question 33

Multiple Choice

Which of the following defines goodwill resulting from an acquisition?

• A)The historical value of the stock received less the current value of the stock issued.
• B)The excess purchase price over the fair value of the entity acquired.
• C)The difference between the designated market value and the book value of the target company.
• D)The amount of the contingent performance obligation less the purchase price adjustment made upon signing the letter of intent.