An accounting question - on goodwill after transfer of ownership
Hi all
long time lurker, first time poster.
I'm working on a company that the ownership of the company is set to change hands. Owner bought private company A at USD100, and sells it at USD200.
With the new ownership, I understand that there is a premium of 100 to be book, supposedly goodwill.
Can someone walk through the high level mechanics of how that works? Essentially, I thought the original owner walks away with 100 in his pocket, but Im told that is not the case.
Thanks
Saepe id molestiae nam necessitatibus. Modi aut quae aut iure.
Voluptatem optio quasi sed eum. Eum sit earum maiores aspernatur. Tenetur ut sequi incidunt voluptatem nihil sit. Ut maiores dolor molestias aperiam et voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...