Computation of Goodwill:
Assume that an investor purchases 100% of an investee company for $24 million. The fair values of the identifiable net assets are as follows:

Tangible net assets:
Receivables, inventories, PPE, payables, and accruals $8 million
Intangible assets:
Patents, customer lists, trade name, software, etc. $5 million
Research and development assets:
Research projects in process at the investee company $6 million
$19 million

In addition to the purchase price, the investor also incurs acquisition-related costs amounting to $1.8 million for professional fees and the internal allocation of overhead relating to the purchase.
Required:
(a) How much of the purchase price is assigned to Goodwill?
(b) How do we account for Goodwill subsequent to the acquisition?
(c) Given the accounting treatment for Goodwill subsequent to the acquisition, why might companies be motivated to increase the amount assigned to goodwill?