Q27

Under the acquisition method of accounting for a businesscombination, goodwill is equal to

		The acquired company's ability to generate excess profits.
		The excess of the cost of the acquisition plus the fair value ofthe noncontrolling interest over the fair value of the acquiree'snet assets.
		The excess of the cost of the acquisition over the fair value ofthe acquiree's net assets.
		The excess of the fair value of acquiree's net assets over thecost of acquisition.