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17 April, 07:01

The difference between the price paid to acquire another company and the fair market value of that company's net assets can be referred to as ... (a) A master valuation account. (b) Goodwill. (c) A gap filler. (d) All of these answer choices are correct.

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  1. 17 April, 09:40
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    Answer: Option (b) is correct.

    Explanation:

    Goodwill is the correct answer.

    Goodwill referred as the difference between the price paid by any individual for acquiring a company and book value of the company that includes the fair value of a company's tangible assets, intangible assets and liabilities.

    Basically, it is a payment for the reputation of the acquired company in the market.
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Home » Business » The difference between the price paid to acquire another company and the fair market value of that company's net assets can be referred to as ... (a) A master valuation account. (b) Goodwill. (c) A gap filler.
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