35e: Goodwill (homegrown vs acquired)

The book states:

Two companies with identical assets, but where one has grown through acquisition of some business units while the other has grown internally by creating such business units, will show different balance sheet values of the same assets.

Let’s say you have two law firms, A and B. They are similar, except A created its entire criminal defense department from scratch whereas Law Firm B got its criminal defense segment by recently acquiring Law Firm C (a small law firm that specializes in criminal defense).

Yesterday, the goodwill lookd like this:

Company A has $10M in Assets, and 0 in liabilities. 5M is in book value ($3Mcash, $1Moffice building, $1Mcomputers) so there is $5M goodwill.

OLD Company B, has $7M in Assets, and 0 in liabilities. $4.4M is in book value (3Mcash, 700koffice building, 700kcomputers) so there is $5.6M goodwill.

Company C (B’s acquisition target), has Total assets of 3M, 0 in liabilities, 600k book value (ZERO cash, 300k in office building, 300k in computers) . Thus, goodwill is 2.4M for company C. ---------- This morning, C merged under B. Now it looks like

Company A has $10M in Assets, and 0 in liabilities. 5M is in book value ($3Mcash, $1Moffice building, $1Mcomputers) so there is $5M goodwill.

NEW Company B, has $7M in Assets, and 0 in liabilities. $5M is in book value (3Mcash, 1M office building, 1M computers) so there is $5M goodwill.

Both companies now have identical assets, identical book value, and thus identical goodwill. How is what the textbook said true?