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    CPA Question - Computing Goodwill

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    Please explain thoroughly how to compute a company's goodwill so that I can understand for the future.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:55 am ad1c9bdddf

    Solution Preview

    'Goodwill' is a term that refers to the company's value beyond tangible and intangible assets. This amount represents the amount that a company is valued at, when all elements are considered, beyond the book value of a company. For example, let's say I own a company like Apple that has an extensive customer base and that sells directly to customers, with millions ...

    Solution Summary

    This solution thoroughly explains how goodwill is calculated.