I would like to know how to compute the goodwill algebraically. If the capital is $$100,000, then an outsider paid an admission of $20,000 for a 20% interest. Therefore, the value of the company would be $100,000, which is less than the $120,000 net asset. What would be the intangible (goodwill) contribution to the company?

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Goodwill Calculation Algorithm I would like to know how to compute the goodwill algebraically If the ... View the full answer