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The purchase accounting method recorded assets and liabilities at their fair value as opposed to their book values. Any excess paid above the fair value price was recorded as goodwill, which ...

Ramanna, Karthik, and Ross L. Watts. "Evidence on the Use of Unverifiable Estimates in Required Goodwill Impairment." Review of Accounting Studies 17, no. 4 (December 2012): 749–780.