"Goodwill is the excess of purchase price over the book values of the individual assets required." Do you agree? Explain.

a) Disagree. Goodwill is measured by the excess of purchase price over the fair-value, not the book value, of the net assets (assets less liabilities) acquired.

b)Disagree. Goodwill is measured by the excess of purchase price over the fair-value, not the book value, of the equity (liabilities less assets) acquired.

c) Agree. Goodwill is measured by the excess of purchase price over the book value, not the fair value, of the equity (liabilities less assets) acquired.

d)Agree. Goodwill is measured by the excess of purchase price over the book value, not the fair value, of the net assets (assets less liabilities) acquired.