Question: Which statement is not correct? Multiple Choice Purchased goodwill equals the purchase price of the firm acquired less the current fair value of net assets

Which statement is not correct?

Multiple Choice

  • Purchased goodwill equals the purchase price of the firm acquired less the current fair value of net assets (assets less liabilities) acquired.

  • Goodwill is only recorded when purchased

  • Goodwill cannot be the result of the purchasers paying too high a price for the company.

  • When the fair market value of the net assets acquired is greater than the purchase price, the purchaser has received a bargain and the result is called negative goodwill.

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