Question

Goodwill a. generated internally should not be capitalized unless it is measured by an individual independent of the enterprise involved. b. is easily computed by assigning a value to the individual attributes that comprise its existence. c. represents a unique asset in that its value can be identified only with the business as a whole. d. exists in any company that has earnings that differ from those of a competitor.

Answer 1

C) represents a unique asset in that its value can be identified only with the business as a whole.

Step-by-step explanation:

Goodwill results when a company acquires another company and the price paid is higher than the fair market value of the acquired company. Goodwill is defined as an intangible asset that represents the capacity that a company has to generate revenue beyond the market value of its assets. Goodwill generally results from a company's brand and good reputation, good customer service and employee relations, etc.

For example, there is a successful restaurant in your town, and even though other restaurants might have similar or even better assets, location, etc., that restaurant has a much greater demand. That success can be attributed to the restaurant's reputation, great service, fantastic food, etc., that cannot be replicated just by opening a similar restaurant. That ability to generate revenue that cannot be measured simply by the restaurant's assets is goodwill.

Answer 2

Goodwill represents a unique asset in that its value can be identified only with the business as a whole.

Step-by-step explanation:

Goodwill is the cost of purchase of a business less the fair market value of all the assets and liabilities that can be identified.

Goodwill is an example of intangible asset

Examples of goodwill includes :

1. Acquired company’s brand name

2. Solid customer base

3. Good customer relations

I hope my answer helps you