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Question
How is goodwill LBO calculated?
How is goodwill LBO calculated?
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Solution
Goodwill is equivalent to Seller Proceeds less the net recognizable resources of the acquiring organization. Net recognizable assets are equivalent to recognizable resources less liabilities, which per the bookkeeping condition is equivalent to investors.
Goodwill = seller proceeds – old company’s common equity.
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Goodwill is equivalent to Seller Proceeds less the net recognizable resources of the acquiring organization. Net recognizable assets are equivalent to recognizable resources less liabilities, which per the bookkeeping condition is equivalent to investors.
Goodwill = seller proceeds – old company’s common equity.
Also see:
Stay tuned to BYJU’S to learn similar Commerce Questions.
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