hassan

Equity method - the way I remember this concept is to see how much of what I purchased justifies the amount I paid for it
Take your % BV
Purchase price - %BV = Amount I need to justify, anything that I can’t justify goes to goodwill.
How do I know what’s justified…
Take the sum of your % of FV - BV
Goodwill = Total amount to justify - Sum
Hope that’s correct, it would be too sad to relearn.