When a company acquires a subsidiary, goodwill is measured as

When a company acquires a subsidiary, goodwill is measured as

When a company acquires a subsidiary, goodwill is measured as:

A. Fair value of consideration paid minus fair value of net assets acquired

B. Book value of consideration paid minus book value of net assets acquired

C. Fair value of consideration paid minus book value of net assets acquired

D. Book value of consideration paid minus fair value of net assets acquired

Answer: A

Explanation: Goodwill = Fair value of consideration paid – Fair value of identifiable net assets acquired (ASC 805-10-30-2).