TEAM F/A

[lady*b]

Negative Goodwill defined:


gain occurring when the price paid for an acquisition is less than the fair value of its net assets.

Depending on the circumstances, this is listed as a separate line item and usually recognized as income. Negative goodwill can sometimes occur after a distressed sale. Because this type of sale almost always happens under unfavorable conditions, the seller generally receives a worse price. When the price received is less than the actual value of its net assets you have negative goodwill.

http://www.investopedia.com/terms/n/negativegoodwill.asp