Final answer:
The statement is false; Goodwill is an intangible asset that represents the excess of the purchase price over the fair value of the identifiable net assets, not just the purchase price less the market value.
Step-by-step explanation:
The statement in question is false. In statutory accounting, Goodwill is not simply the purchase price of the company less the market value. Goodwill is actually an intangible asset that represents the excess of the purchase price over the fair value of the identifiable net assets (assets minus liabilities) of the acquired company. When a company purchases another company, it may pay more than the fair value of the net identifiable assets due to factors like the company's brand, customer relations, and patent or proprietary technology, which are not individually identified and separately valued in the purchase. This excess amount is recognized as Goodwill on the balance sheet of the purchasing company.