Goodwill
Goodwill exists when a purchaser pays more for a business than the fair market value of the net assets if purchased separately.
The payment above and beyond the fair market value is recorded in the Goodwill account.
APB #17 states that goodwill should be amortized over a reasonable number of future periods, but not longer than 40 years.
Goodwill should not be recorded unless it is paid for in connection with the purchase of a whole business.
Amount = Purchase price - FMV of identifiable assets.