Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Goodwill is an intangible asset of a company which is generated from the acquisition of a company or enterprise. It is valued as per the purchase price of company. To choose: The correct answer.

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Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Goodwill is an intangible asset of a company which is generated from the acquisition of a company or enterprise. It is valued as per the purchase price of company.

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