What is Goodwill? It is an intangible asset a company accounts
on its balance sheet when it purchases a new business.
Goodwill = the price paid for the acquired company minus the
fair market value of its net identifiable assets.
So the amount of goodwill that Robinson records at the
purchase date would be:
= 3,870,000 – 2,840,000
= 1,030,000 is the answer.
