What do you think is the goodwill meaning with an example?

It might not be easy to comprehend the goodwill definition meaning until you are presented with a real-life business situation. Assume that a company buys another company at the cost of $500,000, but the fair value of its net identifiable assets excluding goodwill is worth $400,000. In this case, the remaining $100,000 could be recorded as goodwill as long as the conditions for the accounting of acquisition are met. It could be the result of a good customer base or good name. If one understands the goodwill meaning through examples, then he would be able to understand financial statements better. Do you know what goodwill means from accounting studies or reading company balance sheets? Share your experience.