Answer: Goodwill is an intangible asset that is linked with the acquisition of one company by another.
To determine Goodwill, subtract the purchase price of a company from the net fair market value of identifiable assets and liabilities. It is considered an intangible asset on the balance sheet of acquiring company under the long-term asset account. If the acquiring company purchases the company at a bargain then it is referred to as negative goodwill. The value of goodwill can be checked by the companies on their financial statement.
Goodwill is an Intangible Asset
Goodwill is an intangible asset that is related to the buying of a company by another. It includes brand recognition and intellectual property