Which of the following statement is correct?
(A) The amount of Goodwill or Capital Reserve is recorded in the books of
purchasing company only
(B) The amount of Goodwill or Capital Reserve is recorded in the books of vendor
company only.
(C) Goodwill = Net Assets – Purchase price
(D) The face value of shares of purchasing company will be taken in to account while
calculating purchase consideration.
(A) The amount of Goodwill or Capital Reserve is recorded in the books of
purchasing company only
(B) The amount of Goodwill or Capital Reserve is recorded in the books of vendor
company only.
(C) Goodwill = Net Assets – Purchase price
(D) The face value of shares of purchasing company will be taken in to account while
calculating purchase consideration.