Which of the following is true concerning goodwill?

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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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