Suppose Dee's just acquired the assets of Flo's Flowers. The book value of Flo's Flowers assets was $68,000 but Dee's paid a total of $75,000. The additional $7,000 paid by Dee's will be recorded on Dee's balance sheet as: - accounts payable. - other current assets. - goodwill. - property, plant, and equipment.

Question

Business

Sutton

12 April, 20:17

Suppose Dee's just acquired the assets of Flo's Flowers. The book value of Flo's Flowers assets was $68,000 but Dee's paid a total of $75,000. The additional $7,000 paid by Dee's will be recorded on Dee's balance sheet as: - accounts payable. - other current assets. - goodwill. - property, plant, and equipment.

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Answers (1)

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Dalia Mclean · Answer 1

The correct answer is goodwill

Explanation:

The term Goodwill refers to an asset, categorized as intangible, it is associated with the purchase of one company by another; when the purchase price is greater than the sum of the fair value of all assets purchased in the acquisition and the liabilities assumed in the process.

Some examples of goodwill are patents and a company's brand name