Which of the following components is included in the calculation of goodwill when a business combination occurs?

Goodwill is recognized in a business combination when the purchase price exceeds the fair value of the identifiable net assets acquired. The calculation of goodwill includes the fair value of consideration transferred, which encompasses not only cash payments but also any other assets transferred, liabilities assumed, and equity interests issued as part of the acquisition. This fair value measure is crucial as it represents what the acquirer is willing to pay for the business over and above the identifiable net assets, reflecting factors like synergies, brand value, and other intangible aspects that contribute to future profitability.

In contrast, training employees is considered a current cost and doesn't contribute to the calculation of goodwill since it does not represent a fair value that can be capitalized. Similarly, while market share may indicate potential future benefits, it is not a quantifiable asset included in the goodwill calculation as per accounting standards. Lastly, the historical cost of assets is not relevant for determining goodwill, as it lacks consideration of fair value adjustments that must be made in business combinations. Therefore, it is the fair value of consideration transferred that is central to computing goodwill.