Problem

Interpreting Goodwill DisclosuresThe Walt Disney Company owns theme parks, movie studios,...

Interpreting Goodwill Disclosures

The Walt Disney Company owns theme parks, movie studios, television and radio stations, newspapers, and television networks, including ABC and ESPN. Its balance sheet recently reported goodwill in the amount of $22 billion, which is more than 35 percent of the company's total assets. This percentage is very large compared to that of most companies. Explain why you think Disney has such a large amount of goodwill reported on its balance sheet.

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