[...] is the premium paid for the target company's reputation, brand names, customers or suppliers, technical knowledge, key personnel, and so forth.
Answer
Goodwill
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Subject 2. Measurement Bases of Assets and Liabilities only if it is purchased by acquiring another business at a price higher than the fair market value of its net identifiable assets. It is not valued directly but inferred from the values of the acquired assets compared with the purchase price. <span>It is the premium paid for the target company's reputation, brand names, customers or suppliers, technical knowledge, key personnel, and so forth.
Goodwill only has value insofar as it represents a sustainable competitive advantage that will result in abnormally high earnings. Analysts need to be aware of the possibil
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