Goodwill on acquisition is recorded when:

A) the cost of the acquisition of the subsidiary is less than the fair value of the subsidiary's equity.
B) the cost of the acquisition is more than the fair value of the subsidiary's equity.
C) the cost of the acquisition is equal to the fair value of the subsidiary's equity.
D) none of the above.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Acquisition

The process by which a company purchases most or all of another company's shares or assets, in order to take control or ownership of that company.

Fair Value

The cost expected to be received for an asset sale or to be paid for transferring a liability during a well-organized interaction between market actors as of the valuation moment.