What is the Goodwill amount that Fit Technology will record after acquiring Facet Corporation?

Goodwill is an intangible asset that arises when one company acquires another for a price that exceeds the fair value of its identifiable net assets. To compute the Goodwill, the acquirer needs to assess the fair market value of the target's identifiable assets and liabilities at the time of acquisition and compare it with the purchase price.

In this case, if the Goodwill amount recorded by Fit Technology after acquiring Facet Corporation is determined to be $215 million, it suggests that this figure results from the difference between the total consideration paid for the acquisition and the fair value of the identifiable net assets of Facet Corporation.

For instance, if Fit Technology paid $500 million for Facet Corporation, and the fair value of Facet's identifiable net assets (assets minus liabilities) is assessed at $285 million, then the calculation for Goodwill would be:

Goodwill = Purchase Price - Fair Value of Net Assets

Goodwill = $500 million - $285 million = $215 million

This calculation demonstrates how the implied value paid signifies more than the sum of the separable and tangible assets, perhaps due to factors like brand reputation, synergies expected from the merger, or market position, all of which contribute to the disparity that is recorded as Goodwill on