Goodwill is created when

Question $3$Select one:

Companies internally generate intangible items that are valuable such as name brand reputation and excellent customer service

A company buys another company or division and pays less than the fair value of the net assets

A company develops a product that is expected to provided positive cash flows into the foreseeable future with no expected end date to the product's ability to generate cash flows

A company buys another company and the company being purchased has recorded goodwill that is purchased as an asset in the transaction

A company buys another company or division and pays more than the fair value of the net assets