Goodwill is calculated as the purchase price paid for a business minus the fair value of its identifiable assets and liabilities. For example, if a company pays $100 million to acquire a business whose net identifiable assets have a fair value of $70 million, it records $30 million of goodwill. Identifiable assets include tangible items and separately recognized intangibles such as pa... https://thealgebragroup.com/what-is-goodwill-impairment