Goodwill is created when one company acquires another for a price higher than the fair market value of its assets; for example, if Company A buys Company B for more than the fair value of Company B's assets and debts, the amount left over is listed on Company A's balance sheet as goodwill.
If the asset is purchased to resale then it should be entered under Stocks.
Hope this helps :)
Nov 22nd, 2014
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