Computation of goodwill Assume that an investor purchases 100% of an investee company for $28 million in a transaction that qualifies as a business combination. The fair values of the identifiable net assets are as follows: In addition to the purchase price, the investor also incurs acquisition-ralated costs amounting to $1,8 million for professional fees and the internal allocation of overhead relating to the purchase. a. How much of the purchase price is assigned to Goodwil? million b. How do we account for Goodwill subsequent to the acquisition? Goodwill is reported on the consolidated balance sheet, amortzed over its usefut ife, and written-down if impaired. oGoodwili is reported on the consolidated balance sheet and remains on the balance sheet until deemed impaired. Goodwill is not reported on the consolidated balance sheet