If the purchase price exceeds the net assets of a company, the excess amount is…

If the purchase price exceeds the net assets of a company, the excess amount is debited to________________

  • A.
    Cash account
  • B.
    purchase account
  • C.
    goodwill account
  • D.
    sales account
Correct Answer: Option C
Explanation

Goodwill is the excess of purchase consideration over the total value of the business

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