When a Pro-Tech acquired Reliable Software for$14 million, doesn't that include the assets? Shouldn't liabilities and Fair value differences be subtracted separately or at least Fair value differences accounted for later? Why would Goodwill be included later?

Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable's net assets (assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill. Step-by-step solution Step 1 of 1 A Calculation of the amount paid for goodwill = Purchase Price - Fair value of net assets acquired = $14 million - ($8.3 million +$2.5 million) = $3.2 million Note: - In this question, book value of all the assets and liabilities equaled their fair except certain intangible asset whose fair value exceeded book value. So, we added that value to the total fair value