ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 231

b. it is the difference between the fair value of the net tangible and
identifiable intangible assets as compared with the purchase price of
the acquired business.

c. the value of a business is computed without consideration of
goodwill and then goodwill is added to arrive at a master valuation.

d. it is the only account in the financial statements that is based on
value, all other accounts are recorded at an amount other than their
value.

45. Easton Company and Lofton Company were combined in a
purchase transaction. Easton was able to acquire Lofton at a bargain
price. The sum of the fair values of identifiable assets acquired less
the fair value of liabilities assumed exceeded the cost to Easton.