Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Option b) Goodwill is the right response. A purchase consideration is the amount paid to the target company when a firm buys another company as part of a business agreement.
This purchase consideration is typically decided upon at the time of the acquisition by the acquirer and the target company. When the purchase price paid exceeds the target business's fair market value, the excess is seen as having been paid for the target company's goodwill, which is subsequently recorded as part of the acquisition of another firm. And if the purchase consideration is less than the target company's market value, or if the purchase consideration exceeds the target company's fair market value, the difference is recorded as a capital reserve.
learn more about consideration here:
https://brainly.com/question/25686387
#SPJ4
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
