Which of the following is true concerning goodwill?
A) Goodwill can never be recorded.
B) Goodwill is recorded when a company is purchased for more than the fair value of its identifiable net assets.
C) Goodwill is recorded when the market value of a company exceeds the fair value of its identifiable net assets.
D) Goodwill is recorded as a revenue in the income statement.
Answer: B
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