Question: In a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets

In a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets or liabilities. How are these amounts determined at acquisition? How are these amounts accounted for in subsequent periods?

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In accounting goodwill is derived as a residual figure It refers to the investors cost in excess of ... View full answer

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