Question

How Do You Know if Goodwill Is Negative?

Answer 1

When the purchase price of a company is lower than the fair value of its tangible and intangible assets, then the goodwill is regarded as negative.

Also read:

• Methods of Valuation of Goodwill
• Why Do We Debit Goodwill Account While Distributing It Amongst Old Partners
• Treatment of Goodwill
• MCQs on Goodwill
• Intangible Assets

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