WAEC - Accounts Principles Of Accounts (2013 - No. 33)

When a business is purchased from a sole trader, the excess of the purchase price over the net assets is
reserve
goodwill
feehold
valuation price

Explanation

 Goodwill is recorded when a company acquires (purchases) another company and the purchase price is greater than the fair value of the identifiable tangible and intangible assets therein.

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